Securities Investigation – Benefit Street Partners Realty Trust
The White Law Group continues to investigate the liability that FINRA registered brokerage firms may have for improperly selling high-risk REITs, like Benefit Street Partners Realty Trust to investors.
Benefit Street Partners Realty Trust, Inc., a real estate finance company, originates, acquires, and manages a portfolio of commercial real estate debt investments secured by properties located in the United States and internationally, according to Bloomberg.
According to its prospectus, “Investing in our common stock involves a high degree of risk. You should purchase these securities only if you can afford a complete loss of your investment.”
Unfortunately for investors, you cannot sell your shares of Benefit Street Partners Realty Trust on the market. It is an illiquid investment that has not stated when it will liquidate.
Currently Central Trade & Transfer, a secondary market for private placements, is listing shares of Benefit Street Partners for just $15.00/share. This may mean a significant loss for investors as the original offering price was $25.00/share.
The Trouble with Non-Traded REITs
Non-traded REITS, like Benefit Street Partners Realty Trust, are considerably more complex and involve a high degree of risk than traditional investments such as stocks and bonds. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Recommendations should be in line with the investor’s age, risk tolerance, net worth, and investment experience.
Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses through FINRA Arbitration.
FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute
If you suffered losses investing in Benefit Street Partners Realty Trust, the securities attorneys at The White Law Group may be able to help you. To speak to a securities attorney about the potential to recover your investment losses, please call the offices of 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 Vero Beach, Florida.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.