Behringer Harvard Cyan REIT Investment Investigation
Have you suffered investment losses in Behringer Harvard Cyan REIT? If so, the securities attorneys of The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Behringer Harvard creates and manages real estate investments through public and private fund structures, joint ventures and separately managed accounts, according to their website. The company also offers strategic advisory, asset management, tax-deferred exchange and capital markets solutions.
The Trouble with Private Placements
The trouble with private placements, like Behringer Harvard Cyan REIT, is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, private placements are more complex and less regulated. They are better suited for sophisticated and institutional investors.
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.
Unfortunately, the high sales commissions associated with private placements often provides some broker dealers with enough incentive to overlook suitability requirements. Broker dealers earn extremely high sales commission for selling private placements, sometimes as high as 15%.
Another problem with these investments involves liquidity. Investors looking to sell a private placement investment often have difficulty finding a buyer, and can suffer significant losses on the sale.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Behringer Harvard Cyan REIT, please contact The White Law Group at 888-637-7710 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.