Recovery of Investment Losses in American Realty Capital New York City REIT
Are you concerned about losses investing in American Realty Capital New York City REIT? If so, The White Law Group may be able to help you recover your losses through FINRA Arbitration.
American Realty Capital New York City REIT is a publicly listed non-traded real estate investment trust that owns 19 commercial real estate properties, including office and retail properties, located in New York City.
On June 1, 2017, Cove Partners III LLC, a shareholder of American Realty Capital New York City REIT, Inc. announced that it has issued an open letter to its fellow NYC REIT shareholders urging them to once again vote against the shareholder-unfriendly proposals to amend the Company’s Charter at the upcoming annual meeting of shareholders scheduled to be held on June 27, 2017.
According to the letter, Cove Partners III urged fellow shareholders, “If you care about the value of your investment, want to see an active fair market for your shares, and importantly, retain the ability to select and hold the Board and your management team accountable, then you MUST vote against all of these self-serving proposals at the upcoming Annual Meeting.”
In addition, the letter points out that American Realty Capital New York City REIT is managed by an external advisor controlled by Nicholas Schorsch, whose affiliated entities have experienced numerous scandals in the past few years. First the American Realty Capital Properties accounting cover-up and upcoming criminal trial, then the Realty Capital Securities proxy fraud charges and fine by the state of Massachusetts, and finally, the RCS Capital 2016 bankruptcy.
Risks of REITs
Compared to traditional investments, such as stocks, bonds and mutual funds, REITS, are considerably more complex and involve a high degree of risk. Unfortunately many investors were not made adequately aware of the risks and liquidity problems associated with REITs.
The White Law Group has represented numerous investors in claims against the brokerage firm that recommended non-traded REITs to its investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to 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.
If you have invested in American Realty Capital New York City REIT 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.