Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of their business dealings with Lawrence Adamo or the unsuitable recommendations of another investment advisor to invest in ICON 12, the Hennessey Financing Fund or other non-traded REITs. An arbitration claim was recently filed against Adamo, a financial advisor with NFP Securities Inc.

According to the allegations, Adamo made unsuitable recommendations to his clients, an elderly couple, to invest in risky, non-traded real estate investment trusts. The couple’s son is attempting to recover damages of $750,000 following his parents’ deaths. Allegedly, the couple invested a significant amount of their retirement savings at the recommendation of Adamo. Stock fraud lawyers are claiming that the investments were unsuitable given the elderly couple’s conservative risk profile.

Reportedly, many seniors are being persuaded to invest in non-traded REITs but are not being made aware of the risks and illiquidity of these products. According to securities fraud attorneys, many brokers and advisers with full-service brokerage firms may be tempting senior investors with promises of better returns while failing to adequately disclose the risks. Many retirees have a low risk tolerance and want conservative, income-producing portfolios and are attracted by brokers’ promises of a steady stream of distribution income from non-traded REITs.  What brokers and advisors often times do not disclose is that distributions may be suspended or stopped completely. Another problem retirees face with REITs is that they may need access to their funds, but many non-traded REITs have suspended redemptions, leaving investors with limited options in the event that they need to sell REIT shares to access their funds.]

The securities fraud attorneys at Law Office of Christopher J. Gray, P.C. are reviewing possible claims involving unsuitable or misleading representations by stockbrokers and advisors concerning non-traded REITs.   Some of the non-traded REITs that may be been the subject of unsuitable recommendations by brokers or advisors include  Inland Western, Inland American, KBS REIT, Cornerstone Healthcare REIT, Behringer Harvard REIT, Paladin Realty Income Properties REIT, Wells REIT, Apple REIT, Desert Capital, REIT, TNP Strategic Retail Trust, Dividend Capital REIT, Whitestone REIT, ArciTerra National REIT and CNL Lifestyle Properties REIT.

If you or a loved one suffered significant losses as a result of your business dealings with Lawrence Adamo or the unsuitable recommendation by any advisor to invest in  non-traded REIT, you may be able to recover your losses through securities arbitration. To find out more about your legal rights and options, contact a stock fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 for a no-cost, confidential consultation.

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