Recovery of Investment Losses in Wells Real Estate Fund VIII A
Have you suffered investment losses in Wells Real Estate Fund VIII A ? If so, The White Law Group may be able to help you recover your losses by filing a FINRA arbitration claim against the brokerage firm that sold you the investment.
According to their website, Wells Real Estate Funds, was founded in 1984, and has invested more than $12 billion in real estate for more than 300,000 investors, through non-traded REITS.
The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like Wells Real Estate Fund VIII A . Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.
Secondary Market Offer
A secondary market for private placements, Central Trade and Transfer, is currently listing shares of Wells Real Estate Fund VIII A for just $1.31 per share. This is unfortunate news for investors, since the original price was $10.00/share.
The Problem with Non-traded REITs
Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.
Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%. Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.
In addition to the high risks, non-traded REITs, like Wells Real Estate Fund VIII A, often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.
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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you suffered losses investing in Wells Real Estate Fund VIII A or another Wells Real Estate Fund offering and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.