Investors Could Recover American Investment Exchange Losses

by InvestorLawyers on April 2, 2012

in FINRA,Retirement,Securities Fraud,Suitability

Investment fraud lawyers are currently representing individuals who suffered losses as a result of their investments in an American Investment Exchange TIC or other real estate co-ownerships investments. In many cases, brokers improperly recommended the purchase of tenant in common investments that were too risky for the investor’s portfolio and/or investment objectives. American Investment Exchange TICs are among these risky investments.

Investors Could Recover American Investment Exchange Losses

TICs, or tenancies-in-common, are investments in which multiple investors are sold a property. These investors are then co-owners of the property, and receive fractional interests in said property. The investors then enjoy their own share of the net income and expenses, proceeds of sale and appreciation of the property.

Because of the high commission paid by co-ownership real estate investments and TICs, stockbrokers often make improper recommendations in order to earn the commission, which is often as high as 10 percent. If this fraud has occurred, a securities arbitration lawyer can help investors recover their losses through Financial Industry Regulatory Authority securities arbitration.

Before recommending an investment to a client, brokers are required to perform the necessary due diligence to establish whether the investment is suitable for the client given their age, investment objectives and risk tolerance. According to investment fraud lawyers, TICs like American Investment Exchange may involve liquidity problems, as well as a risk level that is higher than many investors can, or should, tolerate. However, brokers often misrepresent the risks associated with the TIC and, instead, focus on the promised income stream when selling the investment. Many retired individuals are attracted to the income stream but are not made aware of the risks involved. Any investor who was not made aware of a TICs risks before investing should contact an investment fraud lawyer immediately.

If your broker improperly recommended an American Investment Exchange TIC or other co-ownership real estate investments, you may be able to recover losses through securities arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

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