October 13, 2017 Comments (0) Blog, Current Investigations

Welsh/CNL Properties I LLC: Update – Letter to investors

Welsh/CNL Properties I
(Last Updated On: October 27, 2017)

Investigating Potential Claims Involving Welsh/CNL Properties I LLC

The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended Welsh/CNL Properties I LLC to investors.

CNL Financial Group (CNL) is a private investment management firm providing real estate and alternative investments. According to the website, since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $34 billion in assets. CNL is headquartered in Orlando, Florida.

CNL often raises money though Reg D private placements. These types of investments involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks and bonds.

Letter to investors of Welsh/CNL Properties I LLC

According to a letter to shareholders of Welsh/CNL Properties I, on October 12, 2017, liquidation has been finalized and unfortunately for investors, the net income liquidating distribution was much lower than anticipated, on average just $375 per $5,000 unit. The letter states, “it is important to know that we explored various possibilities for a more positive outcome, and while we are extremely disappointed with the results of this investment, we believe that completing this sale was in the best interest of our members.”

In the letter, the company blamed The Great Recession, “specifically tenant bankruptcies and the credit rating downgrade for the parent company of the tenant representing the largest concentration of the portfolio’s base rental income, ultimately decreased the portfolio sale price.”

Suitability of Investments

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 appropriate in light of 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 in a FINRA arbitration claim.

Free Consultation

Have you suffered investment losses in Welsh/CNL Properties I? If so, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA Dispute Resolution claim.

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. To learn more about The White Law Group visit www.whitesecuritieslaw.com.