Sentio Healthcare Properties – Securities Investigation
Have you suffered investment losses investing in Sentio Healthcare Properties? If so, The White Law Group may be able to help you by filing a FINRA Resolution claim against the brokerage firm that sold you the investment.
Sentio Healthcare Properties, Inc. is a public, non-listed, real estate investment trust, which invests exclusively in healthcare-related real estate based in Orlando, FL.
Recently, Sentio Healthcare Properties Inc., sent a letter to its shareholders recommending that they reject an upcoming tender offer from MacKenzie Realty Capital.
According to the letter, MacKenzie Realty Capital Inc. – a non-traded business development company, plans to offer $7.25 per share of Sentio common stock. The share limit was not disclosed.
John Mark Ramsey, Sentio’s CEO, recommended shareholders reject the tender offer since “it is significantly less than the current and potential value of the shares.”
The Risks of REITs
Non-traded REITS, like Sentio Healthcare Properties, are considerably more complex and involve a high degree of risk, than traditional investments, such as stocks, bonds and mutual funds. Unfortunately many investors were not made aware of the risks or the lack of liquidity 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 in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.
The high sales commissions associated with REITs often provides some broker dealers with enough incentive to overlook suitability requirements. Broker dealers earn extremely high sales commission for selling REITs, sometimes as high as 15%.
If you have invested in Sentio Healthcare Properties 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 firm, visit www.WhiteSecuritiesLaw.com.