Recent news regarding the real estate investment trust, United Realty Trust, may be of concern to some investors. According to Investment news, a former executive of Cabot Lodge securities, Al Akerman, sent a letter to the SEC’s Office of the Whistleblower regarding “apparent accounting irregularities and alleged fraud” concerning the REIT.
According to InvestmentNews, Mr. Akerman’s letter alleges “apparent accounting irregularities and alleged fraud with United Realty Trust.” Furthermore the letter alleges that “the REIT was going to fail an assets test because of a $1.5 million liability that was owed to the REIT by its adviser, United Realty Advisors LP.”
Counsel for United Trust have called into question Mr. Akerman’s truthfulness in the matter, according to investment news, alleging Mr. Akerman’s claim of being a whistleblower was done to conceal his alleged criminal behavior.
REITs are undoubtedly complex products that are arguably unsuitable for many investors. Compared to traditional investments, such as stocks, bonds and mutual funds, REITS are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and lack of liquidity associated with REITs.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to If broker fails to make suitable investment recommendations or fail to adequately disclose the risks, they may be liable for investment losses.
If you have concerns about your investment in United Realty Trust or another REIT, please contact 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 Vero Beach, Florida.
For more information on the firm, visit www.WhiteSecuritiesLaw.com.