Recovery of Dividend Capital REIT Losses

by InvestorLawyers on November 2, 2012

in Arbitration,FINRA,REIT,SEC,Securities Fraud,Suitability

Many investors are exploring the possibility of recovering their Dividend Capital REIT losses through securities arbitration. Dividend Capital Total Realty Trust Inc. is, according to its Securities and Exchange Commission filing, a Maryland corporation, formed on April 11, 2005, and located in Denver, Colorado. Its goal is to invest in a portfolio of real estate-related and real property investments. It has targeted investments that include direct investments that consist of high-quality industrial, office, mutli-family, and retail real properties, located primarily in North America. The corporation also invests in securities like mortgage loans, and securities issued by separate real estate companies.

Recovery of Dividend Capital REIT Losses

Many firms have offered to buy shares of Dividend Capital from investors at a price that has been significantly reduced from what they initially paid include. Some of these firms include MPF Income Fund 26 LLC, MPF Northstar Fund LP, MPF Flaship Fund 14 LLC, MPF Platinum Fund LP, MPF Flagship Fund 15 LLC, and Coastal Realty Business Trust.

Recently, a Financial Industry Regulatory Authority arbitration statement of claim related to Dividend Capital REIT was filed against Wells Fargo Investments LLC. If the claim is successful, investors hope to recover around $200,000 in REIT losses. The Claimant is a retired Iowa farmer. Allegations include breach of fiduciary duty, negligence, common law fraud and negligent supervision. Furthermore, the allegations state that Wells Fargo’s investment of the client’s funds was unsuitable because of an over-concentration of assets in the illiquid, high-risk, non-traded REIT.

Typically, REITs carry a high commission which motivates brokers to make the recommendation to investors despite the investment’s unsuitability. The commission on a non-traded REIT is often as high as 15 percent. Non-traded REITs carry a relatively high dividend or high interest, making them attractive to retired investors. However, non-traded REITs are inherently risky and illiquid, which limits access of funds to investors.

If you suffered significant REIT losses as a result of your investment in Dividend Capital REIT, you may have a valid securities arbitration claim. 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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