December 17, 2019 Comments Off on First Capital Real Estate Trust: CEO Reportedly Charged with Fraud Blog, Current Investigations, Securities Fraud

First Capital Real Estate Trust: CEO Reportedly Charged with Fraud

First Capital Real Estate Trust’s CEO Reportedly Charged with Fraud, featured by Top Securities Fraud Attorneys, The White Law Group

Update on First Capital Real Estate Trust

Have you suffered losses investing in First Capital Real Estate Trust?

According to a press announcement yesterday, the Securities and Exchange Commission reportedly charged the head of First Capital Real Estate Trust Inc., Suneet Singal, and three entities, with two separate frauds- one reportedly relating to First Capital Real Estate Trust Inc. (First Capital REIT), and the other allegedly relating to a business development company (BDC).

Singal allegedly claimed that he owned 12 hotels and purportedly contributed them to First Capital REIT in order to acquire a $15.2 million interest in the REIT’s operating partnership, according to the SEC’s complaint.

Singal and First Capital REIT then allegedly made material misrepresentations and omissions concerning the hotels in several filings with the regulator. The complaint alleges that, consequently, First Capital REIT allegedly reported inflated net asset values and purported to issue common shares to investors at inflated prices.

The SEC’s complaint alleges that, after acquiring an ownership interest in the unnamed  BDC’s external investment adviser, Singal allegedly directed the BDC to make two $1.5 million loans to an entity that he controlled, and then allegedly kept nearly half of the loan proceeds to himself. The BDC reportedly lost all of its $3 million investment.

Investigating Potential Securities Fraud Lawsuits

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. The firm has received numerous calls from investors who are concerned about investment losses in the REIT.

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 claimed in November 2016, that it needed “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.

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 Franklin, Tennessee.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

 

 

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