United Mortgage Trust Investment Losses
Have you suffered investment losses in United Mortgage Trust? If so, 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.
United Mortgage Trust is a real estate investment trust (REIT). According to their website, “We invest in residential real estate loans. Investor funds are pooled to acquire and own these assets that might otherwise be outside the means of a typical investor. We seek to produce net interest income from our mortgage investments while maintaining strict cost controls in order to generate net income for monthly distribution to our shareholders. “
On November 15, 2016, United Mortgage Trust announced that due to the lack of financials for the quarter ended September 30, 2016, the company is unable to file Form 10-Q for the quarter ended September 30, 2016.
This is just more bad news for investors
The trouble with non-traded real estate investment trusts (REITs) like United Mortgage Trust, is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, non-traded REITs are more complex and are better suited for investors that can afford to risk the total losses of their investment.
Brokers often earn extremely high sales commission selling non-traded REITs, sometimes as high as 15%. Unfortunately, the high sales commissions associated with non-traded REITs often provides some broker dealers with enough incentive to overlook suitability requirements.
Brokers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor and are in line with the clients risk tolerance, age, net worth, and investment experience.
If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.
For more information on The White Law Group’s investigation of United Mortgage Trust see United Mortgage Trust: Secondary Market Sales $1.50 per share and Investor Update- United Mortgage Trust.
Recovery of Investment Losses
To determine whether you may be able to recover investment losses incurred as a result of your purchase United Mortgage Trust, please contact The White Law Group at (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 Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.