November 12, 2015 Comments (0) Blog, Securities Fraud

Recovery of United Mortgage Trust Investment Losses

Have you suffered investment losses in United Mortgage Trust? If so, the securities attorneys of The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

The trouble with non traded REITS, like United Mortgage Trust, is that they are complex and inherently risky products. According to United Mortgage Trust’s annual 10-K filing, some of the risk factors included:

  • Recent Developments in the Residential Sub-prime Mortgage Market Could Adversely Affect Our Results
  • Our investments are subject to a higher risk of default than conventional mortgage loans.
  • We purchase mortgage investments from affiliates of our Advisor, which may present a conflict of interest from our Advisor.
  • Our results are subject to market and business conditions.
  • Bankruptcy of borrowers may delay or prevent recovery on our loans.

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.

Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale. According to Cttauctions.com, a secondary market for private placements, shares of United Mortgage Trust recently offered for $5.10 per unit in September 2015. This represents a significant loss for many investors

To determine whether you may be able to recover investment losses incurred as a result of your purchase of United Mortgage Trust, please contact The White Law Group at (312) 238-9650 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 Franklin, Tennessee. For more information on the firm, visit www.whitesecuritieslaw.com