Investigation – First Capital Real Estate Trust
The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended high risk non-traded REITs like First Capital Real Estate Trust to investors.
As we told you on May 30, 2017, multiple indirect subsidiaries of First Capital Real Estate Trust Inc. filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of California.
The company reportedly in November 2016, “to protect cash reserves.” During the same time period, Investment News reported that First Capital Real Estate Trust Inc. was failing to pay employees on time. At that time, they reportedly missed filing financial statements with the SEC for more than a year.
Non-tradedREITS,such as First Capital Real Estate Trust are complex, high-risk investments. Unfortunately, many investors are unaware of the risks and liquidity problems with REITs such as First Capital Real Estate Trust, Inc. According to CFX Trading, a secondary market for non-traded REITs, shares of First Capital Real Estate Trust were recently listed for just $4.90/share. This could mean losses for investors, as the original offering price was $10.00/share.
The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs such as First Capital Real Estate Trust to investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend. They must insure 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.
If brokerage firms fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses.
Free consultation with a Securities Attorney
If you are concerned about your investment in First Capital Real Estate Trust Inc. and would like to speak to a securities attorney about the potential to recover your investment losses, please call 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.