The letter was sent by Corvex Management LP and Related Fund Management LLC. Corvex and Related are separately managed investment funds. Together, they own around 9.6 percent of all outstanding CommonWealth REIT common shares.

The letter from Corvex and Related states: “An outdated management structure, abysmal corporate governance, and mismanagement of operations have in our view been a significant driver in the 45 percent decline in CommonWealth REIT’s stock price over the last five years. We believe this continued value destruction is by design — the direct result of self-interested actions taken by CommonWealth’s current Board of Trustees and its external manager, REIT Management and Research LLC (RMR) which is owned by Barry Portnoy and his son, Adam.”

According to the letter, in the last six months, the Portnoys and RMR have attempted to change bylaws and Maryland law in an effort to prevent the removal of trustees and “further entrench management.” Corvex and Related assert that these actions “make it clear that RMR is not operating CommonWealth for the benefit of shareholders, but, rather, for the benefit of the Portnoys. Not only has the Company repeatedly taken action to eliminate shareholder rights, in March they enacted a highly dilutive equity offering in a purported attempt to maintain ‘investment grade ratings’ — only to be downgraded to junk status by Standard & Poor’s as a result of ‘weak’ management and corporate governance.”

In addition to the issues outlined in the letter to shareholders, securities arbitration lawyers are investigating potential investor loss recovery on the basis of allegations that CommonWealth did not disclose certain facts, including the fact that leased office spaces had fallen below expectations, existing tenants were receiving concessions which were eroding CommonWealth’s income and, as a result, CommonWealth’s positive statements about its occupancy rate, dividend payout and leverage ratio were not reasonably founded. For more information about these allegations, please see the previous blog post, “CommonWealth REIT Investors Could Recover Losses.”

If you have suffered significant losses as a result of your investment in the CommonWealth 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.

Securities arbitration lawyers believe that secondary market offers indicate that Dividend Capital Total Realty Trust’s value has appeared to have substantially declined.

Non-traded REIT investments like the Dividend Capital Total Realty Trust typically offer commissions between 7-10 percent, which is significantly higher than traditional investments like mutual funds and stocks. In some cases, the commission generated by these investments can be as high as 15 percent. This higher commission can explain why brokerage firms are motivated to recommend these investments despite their possible unsuitability.

Stock fraud lawyers are investigating the possibility that brokerage firms may be held liable for the recommendation of Dividend Capital Total Realty Trust. Financial Industry Regulatory Authority (FINRA) rules have established that brokers and firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance. Furthermore, brokerage firms must, before approving an investment’s sale to a customer, conduct a reasonable investigation of the securities and issuer. The broker-dealers and firms that recommended this investment to clients may have done so improperly, based on information now available about the investment. Non-traded REITs like this one are illiquid and inherently risky and, therefore, not suitable for many investors.

If you invested in Dividend Capital Total Realty Trust and suffered significant losses as a result, 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.

Bank of America held commercial loans from small banks amounting to around $400 million in 2006. In 2007, securities packages were put together from these loans and then sold to investors. The subpoena arrives only one day after Bank of America, JP Morgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc. settled allegations of engaging in abusive mortgage practices. These abusive practices included engaging in deceptive practices in the offering of loan modifications, a failure to offer other options before closing on borrowers with federally insured mortgages, submitting improper documents to the bankruptcy court and robo-signing foreclosure documents without proper review of the paperwork.

The settlement amounted to $25 billion and involved federal agencies plus authorities in 49 states. This settlement is designed to give $2,000 to around 750 borrowers whose homes were foreclosed upon after the home values dropped 33 percent from their 2006 worth, and to provide mortgage relief. In addition, all five banks will pay $766.5 million in penalties to the Federal Reserve. This is considered to be the biggest federal-state settlement ever. Bank of America will also pay $1 billion to settle allegations that it, together with its Countrywide Financial unit, engaged in fraudulent and wrongful conduct.

Needless to say, between the recent settlement, the subpoena regarding two of its CLOs, and numerous potential securities arbitration claims related to its CDOs, Bank of America is not off to a good start in 2012. If suspicions about the Bank of America CLOs turn out to be correct, investors who suffered losses as a result may have a valid securities arbitration claim. Investors are advised to stay informed on this issue as it holds potential for loss recovery.