February 20, 2017 Comments (0) Current Investigations

American Realty Capital – Retail Centers of America Terminates Distribution Plan

Hines REIT
(Last Updated On: March 31, 2017)

Have you suffered losses investing in American Realty Capital – Retail Centers of America?

Are you concerned about your losses investing in American Realty Capital – Retail Centers of America? If so, the securities attorneys of The White Law Group may be able to help you recover those losses through a FINRA arbitration claim against the brokerage firm or financial advisor that recommended the investment to you.

The White Law Group has handled a number of claims involving non-traded real estate investment trusts (REITs) like American Realty Capital – Retail Centers of America.

In those claims, the firm has alleged, among other things, that REITs were

(1) high-risk and unsuitable for our clients given their financial needs and investment objectives,

(2) that the risks of the investment were not fully disclosed to them, and

(3) that the brokerage firms that sold the investments failed to follow FINRA rules to perform adequate due diligence.

Distribution Plan

On February 17, 2017, American Realty Capital – Retail Centers of America, Inc. (ARC RCA) announced the termination of the distribution reinvestment plan.  This follows the recently approved merger of ARC RCA with and into a subsidiary of American Finance Trust, Inc.   Additionally, on February 17, 2017, ARC RCA filed a Form 15 termination of registration of a security under the 1934 Securities Exchange Act.

The White Law Group continues to investigate potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like American Realty Capital – Retail Centers of America . Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

REITs are risky.

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

In addition to the high risks, non-traded REITs, like American Realty Capital – Retail Centers of America often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim. For more information on The White Law Group’s investigation see  American Realty Capital –Retail Centers of America Tender Offer

If you suffered losses investing in American Realty Capital – Retail Centers of America and would like a free consultation with a securities attorney, please call The White Law Group at (888) 637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.