October 12, 2017 Comments (0) Blog, Current Investigations

Summit Healthcare REIT Investment Losses – Securities Fraud Lawyer

Summit Healthcare REIT
(Last Updated On: October 12, 2017)

Investigating Potential Claims involving Summit Healthcare REIT

Did you lose money investing in Summit Healthcare REIT at the recommendation of your broker? If so, the securities attorney at The White Law Group may be able to help you recover your losses through FINRA Arbitration.

Summit Healthcare REIT is a publicly registered non-traded REIT. It focuses on investing in senior housing facilities and closed its offering in November 2010 after raising $172 million in equity, according to reports.

Recently, MacKenzie Realty Capital, a publicly registered business development company, extended an offer to purchase up to 330,000 shares of Summit for approximately $1.34 per share. According to SEC filings, Summit’s net asset value per share is $2.53, as of December 31, 2016

Summit urged shareholders to reject the unsolicited tender offer. In a letter to shareholders, Summit said, “MacKenzie’s offer price is less than the current and potential long-term value of its shares.”

This is not the first time MacKenzie has made similar unsolicited tender offers for Summit shares.  Two other offers were extended to investors in March 2016 and September 2016.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation of Summit Healthcare REIT.

REITs are Complex and Risky.

Non-traded REITs are complex high risk securities that lack liquidity. They are unsuitable for many investors. Investors looking to sell their shares may have trouble finding a buyer willing to pay the estimated price.

These investments often have high commissions and fees.  This may provide an incentive for brokers to downplay the risks and overlook FINRA suitability rules when making investment recommendations to clients.

Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success. They must evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, and investment objectives.

Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a Financial Industry Regulatory Authority (FINRA) arbitration claim. If you suffered losses investing in Summit Healthcare REIT 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.