Posts tagged ‘CNL Lifestyle Properties fraud’
Have you suffered losses in CNL Lifestyle Properties, Inc.? If so, the REIT fraud attorneys of The White Law Group may be able to help you recover your losses through FINRA arbitration.
According to reports, CNL Lifestyle Properties Inc. recently announced that its estimated per share value has dropped to $7.31 from its original price per share of $10, a drop of 27%. The REIT is also cutting its “distribution,” or dividend to investors.
The White Law Group continues to monitor the non-traded REIT sector, and, specifically, the liability that brokerage firms have for selling these products.
Brokerage firms have a fiduciary duty to their clients to perform adequate due diligence on any investment before offering it for sale to their clients. Due to the high commissions offered by non-traded REITs (typically between 7-10%), the firm has found that these products have been oversold to unsophisticated investors, without the proper disclosures regarding the investments’ risks or illiquidity.
Purchasers of CNL Lifestyle Properties may be able to recover their losses in FINRA arbitration claims against the broker-dealer that sold them the investment.
If you lost money investing in CNL Lifestyle Properties and would like to discuss your legal options, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on the firm, please visit http://www.whitesecuritieslaw.com.
The White Law Group is investigating potential securities fraud claims on behalf of investors involving non-traded REIT investments.
Non-traded REITs are less regulated than other, more traditional investments and often pay a much higher commission than other products. Additionally, non-traded REITs are generally illiquid, making them unsuitable for elderly and retired clients who purchased them at the recommendation of their financial advisor.
Another problem with non-traded REITs is the manner in which they are sold and the disclosures made about the investments to investors. Many investors in non-traded REITs have found themselves blindsided after discovering that their investments were high-risk, illiquid and contained highly specific and lengthy exit clauses.
FINRA is particularly focused on non-traded REITs right now, as it seems that many of the independent brokerage firms are selling these products to their clients. These firms have a fiduciary duty to their clients to research the investments they recommend prior to offering them for sale and to insure that the investments are appropriate for the client. Given the issues involved in non-traded REITs (and the commissions that are paid to the broker and brokerage firm), in many cases it is impossible for a brokerage firm to demonstrate that they have fulfilled their obligation to the client as these investments are simply inappropriate for many investors.
Some examples of non-traded REITs sold to investors by brokerage firms are as follows:
If you have questions about a non-traded REIT investment you purchased, the securities attorneys of The White Law Group may be able to help. For a free consultation, call the firm’s Chicago office at 312-238-9650.
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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.