Concerned about investment losses in Missouri Valley REIT?
Have you suffered investment losses in Missouri Valley REIT? 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.
Missouri Valley REIT, Inc. [MVREIT] is a private investment trust organized to provide a vehicle for individuals and partnerships to invest indirectly in real estate assets, according to the website. Missouri Valley REIT is headquartered in Springfield, Missouri, with an office in Fargo, North Dakota.
According to their website, the company is focused on acquiring and holding Class B multifamily real estate property to deliver annual dividends and build equity value for shareholders.
Missouri Valley REIT raises money through Reg D private placement offerings. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
The Risks of Reg D Private Placements
The trouble with alternative investment products, like Missouri Valley REIT, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.
The White Law Group is investigating the liability that brokerage firms may have for improperly selling private placements like Missouri Valley REIT.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
However, another problem with Reg D private placements is the high sales commissions and due diligence fees the brokers earn. Brokers have an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments. They can easily misrepresent the basic features of the products – usually focusing on the income potential and tax benefits while downplaying the risks.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes. If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Missouri Valley REIT or another private placement investment, please contact 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 Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.
For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.