April 13, 2017 Comments (0) Current Investigations

Secured Income LP Investment Losses

Secured Income LP
(Last Updated On: April 20, 2017)

Recovery of Investment Losses in Secured Income LP

Have you suffered losses investing in Secured Income LP? If so, The White Law Group may be able to help you recover your losses through FINRA Arbitration.

According to Bloomberg, Secured Income LP, through its limited partner, Carrollton X Associates Limited Partnership, invests in, owns, and operates multi-family residential housing complexes in the United States. It owns Fieldpointe Apartments comprising 252 apartment units covering approximately 235,000 square feet with approximately 500 parking spaces located in Frederick, Maryland. Wilder Richman Resources Corporation, Real Estate Equity Partners L.P., and WRC-87A Corporation serve as the general partners of the company. The company was founded in 1986 and is based in Greenwich, Connecticut.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like Secured Income LP. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

The Problem with Non-traded REITs

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 Secured Income LP, 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.

If you suffered losses investing in Secured Income LP 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.