March 5, 2011 Comments (0) Blog, Securities Fraud

Recovery of KBS REIT Investment Losses


Investment Losses in KBS REIT

Have you suffered investment losses in KBS REIT? Are you concerned about KBS REITs current price valuation?  If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase risky non-traded REIT investments, including KBS REIT.

FINRA recently announced that it is paying close attention to the sale of REITs and, in particular, the ways in which broker/dealers marketed and sold the products to investors. In many cases, and notwithstanding the risk of REIT investments, broker-dealers marketed these investments as safe and secure.

Problems with Non-Traded REITs

REITs typically pay a high commission – often as much as 15% (which often explains the stockbroker’s motivation in recommending the REIT investment to the investor).

Due to the relatively high interest or dividend offered by non-traded REITs like KBS REIT, retired investors are often attracted to these products.  Unfortunately, in addition to be risky investments, non-traded REITs are also illiquid (limiting investors ability to access their own money for unforeseen expenses).

Another problem with non-traded REITs is that broker-dealers are not required to frequently update the current price of the investment.  This often leads investors to believe that there REIT investment is doing well even though the widespread real estate market collapse would indicate otherwise.

The White Law Group’s investigation into the improper sales of non-traded REITs to investors includes, but is not limited to, recommendations to invest in the following REITs: Behringer Harvard REIT I, Inland America Real Estate Trust, Inland Western Retail Real Estate Trust, Wells Real Estate Investment Trust II, Piedmont Office Realty Trust, Desert Capital REIT, Apple REIT, Crystal River REIT, and KBS REIT.

Recovery of Investment Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a risky REIT investment, please contact The White Law Group at 888-637-5510

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

0 Responses to Recovery of KBS REIT Investment Losses

  1. J.Covey says:

    I lost money in my KBS REIT 1 investment when Compass Pointe told me my KBS reit 1 investment property value was “reevaluated”. Still haven’t recovered back to my original investment value two years later and can’t get out because I’m locked in to it for I think seven years. KBS paid an advertised 7% dividend for nearly a year then it went to 5.5%. Now some outside company is trying to get me to sell my shares for a dollar a share. This has to be one of my poorest investment choices but I listened to the KBS sales pitch of”oh we have never missed a dividend of 7% since we started this REIT” talk and got burned for it.

  2. Ken Buchanan says:

    My story is the same as J. Covey above except my statement says that I am now earning 5.25% on my original investment. This was sold to my mother, when she was in her late 80s, as a resonably secure place to put her money till she needed it. Now it’s needed and a buck-a-share is a burn no matter how you look at it!

  3. Linda says:

    Same with my mom who is now 85 and needs her money. Was sold to her as completely risk free investment. When I tried to get her out of it two years ago the investment broker did everything he could to try and talk her out of it. Unfortunately we waited a few months befor we sent the proper request form that had to be notorized but it was too late. No way to get your money back. The stock has since been devalued by 30% and the dividends in no way even make up for the devaluation. A scam from beginning to end. Bet the officers of the company haven’t downsized their good life.

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