Hines Global REIT Investment Losses
Have you suffered investment losses in Hines Global REIT? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
According to their website, Hines is the sponsor of REIT and BDC investment products sold through its broker/dealer affiliate, Hines Securities. The firm claims to have entered the retail investment market by sponsoring two non-traded REITs—Hines REIT and Hines Global REIT, now closed to new investors. The company further claims that in 2012 it launched HMS Income Fund, a business development company, and in 2014 it launched Hines Global II.
Hines often raises money for investments through Reg D private placement offerings like the company did for Hines Global REIT. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The Trouble with Alternative Investments
The trouble with alternative investment products, like Hines Global REIT, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds. An additional risk inherent to Hines’ REIT offerings is also the general risk that comes with the real estate market.
The White Law Group is investigating the liability that brokerage firms may have for improperly selling real estate private placements like Hines Global REIT.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
However, another problem with Reg D private placements is that the high sales commissions and due diligence fees the brokers earn for selling such products sometimes can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments or to outright misrepresent the basic features of the products – usually focusing on the income potential while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and if a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
Recovery of Investment Losses
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Hines Global REIT or another Hines private placement investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.