According to reports, First Capital Real Estate Trust, formerly known as United Realty Capital Trust, a small non-traded real estate investment trust, has missed filing financial statements with the SEC for more than a year and recently cut its dividend to investors. Now more bad news for investors: failing to pay employees on time.
According to the company’s quarterly report for June 2015, the REIT had $63.2 million in total assets. Since then, it has reportedly not issued another financial statement with the SEC, although, according to Investment News, it is possible that it has almost four times as many assets, based on a transaction reported last year.
As we told you last month, First Capital suspended the company’s monthly distribution to investors in order to increase its cash reserves according to an SEC filing. For more information on The White Law Group’s investigation see First Capital Real Estate Trust Incorporated Suspends Distributions.
Reportedly, an email was sent to employees last Friday from Paschal Ferreira, chief accounting officer of the REIT’s adviser, First Capital Real Estate Investments. The email discussed changes affecting employees of the REIT’s adviser and then outlined the problems with paying employees promptly.
The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to its investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
If you have invested in First Capital Real Estate Trust and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.