Investment fraud lawyers are currently investigating claims on behalf of Steadfast Income REIT investors. On June 28, 2013, Steadfast Income REIT Inc. was issued a cease-and-desist order by the Ohio Division of Securities for the announcement of price changes for the REIT 59 days before they took effect.
According to the order, “Steadfast’s decision to publicly announce an offering price increase 59 days prior to implementation of the price increase created a sale period that may have artificially increased investor demand for its securities.” The cease-and-desist order only orders a halt in the valuation price and does not stop sales of the Steadfast Income REIT.
On July 12, 2012, an estimated per share value of $10.24 was disclosed for the Steadfast Income REIT. However, securities arbitration lawyers say that the REIT continued to sell at the lower, $10 per share value until September 10, 2012. Reportedly, the announcement of a future valuation change harms shareholders by undercutting the investment’s current value.
The Ohio Division of Securities registration chief counsel, Mark Heuerman stated, “It’s in the best interest of prior shareholders that the REIT sells shares for what it’s worth.” The order does not include any fines restitution for investors and, as a result, many investors are seeking the help of an investment fraud lawyer in order to regain their losses.
The Steadfast Income REIT primarily invests in multifamily real estate or apartment houses. It was launched in 2009 and has assets totaling $691.4 million.
This issue resembles a similar problem that occurred with Tony Thompson’s TNP Strategic Retail Trust, which reportedly continued to sell at $10 per share, despite an estimated NAV increase on November 9, 2012, to $10.60 per share. Furthermore, the REIT stopped paying investor dividends in March, and Thompson is under Financial Industry Regulatory Authority investigation.
If you suffered significant losses as a result of the premature announcement of the Steadfast Income REIT’s value, 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.