Español Inner

Articles Tagged with Inc.

Published on:

Investors in Lightstone Real Estate Income Trust, Inc. (“Lightstone REIT”) may have FINRA arbitration claims, if their investment was recommended by a financial advisor who lacked a reasonable basis for the recommendation, or if the nature of the investment was misrepresented by the stockbroker or advisor.

Money Maze
Lightstone REIT was incorporated on September 9, 2014 as a Maryland corporation that elected to be taxed as a real estate investment trust (REIT).  As a publicly registered non-traded REIT, Lightstone REIT was permitted to sell securities to the investing public at large, including numerous unsophisticated retail investors who bought shares upon the recommendation of a broker or money manager.  Lightstone REIT began offering securities in February 2015 and terminated its offering in March 2017 after raising approximately $85.6 million in investor equity.  Lightstone REIT originates, acquires, and manages a diverse set of real estate properties across the United States.

The Board of Lightstone REIT recently approved a 50% decrease in monthly distributions from an annual rate of 8.0 percent to 4.0 percent. The stated purpose of this reduction is due to liquidity and operating costs concerns as well as a belief that the original 8% was no longer sustainable based upon the funds available from operations.

Published on:

Law Office of Christopher J. Gray, P.C. and co-counsel have filed a class action lawsuit in the United States District Court for the District of Nevada on behalf of all shareholders of The Parking REIT, Inc. “Parking REIT”) and MVP Monthly Income Realty Trust, Inc. (“MVP REIT I”) between August 11, 2017 and December 15, 2017.

On December 15, 2017, the merger of Parking REIT (then known as MVP REIT II, Inc.) and MVP REIT I (the “MVP Merger”) was consummated. The complaint is captioned SIPDA Revocable Trust v. The Parking REIT, Inc., et al. (Case No. 2:19-cv-00428-APG-NJK), and alleges that defendants solicited stockholders’ votes in support of the merger through proxy statements that omitted material facts necessary to make the statements therein not false or misleading. The complaint further alleges that stockholders were damaged as a result of the concealment of this material information.  The complaint is accessible via the link below.

19.3.12 complaint filed stamped

Published on:

woodbridge-300x82
Investors in Woodbridge, either through a First Position Commercial Mortgage (commonly referred to as a “FPCM” or “note”) or in any Woodbridge “units” upon the recommendation of former broker David Ferdwerda (CRD# 832431) may be able to recover your losses through securities arbitration.  As recently disclosed by FINRA, as of October 30, 2018, FINRA barred registered representative David Carl Ferdwerda (“Ferdwerda”) from the securities industry due to his purported failure to provide requested documents and information to FINRA concerning his sales of Woodbridge securities.

According to publicly available FINRA records, from 2012 through March 2018, Mr. Ferdwerda was affiliated with broker-dealer Signator Investors, Inc. (BD No. 468) (“Signator”) in the firm’s Grand Rapids, MI office.  Further, FINRA BrokerCheck indicates that Mr. Ferdwerda was discharged from his employment with Signator on or about March 20, 2018 due to his alleged “Involvement in the sale of unapproved outside investments in violation of firm policy.”  Through his alleged nonresponsiveness to FINRA Enforcement’s investigation, Mr. Ferdwerda neither admitted nor denied FINRA’s findings.

As has been alleged by the SEC, Woodbridge and its owner and former CEO, Mr. Robert Shapiro, purportedly “used his web of more than 275 Limited Liability Companies to conduct a massive Ponzi scheme raising more than $1.22 billion from over 8,400 unsuspecting investors nationwide through fraudulent unregistered securities offerings.”  According to Steven Peiken, Co-Director of the SEC’s Enforcement Division, the Woodbridge “[b]usiness model was a sham.  The only way that Woodbridge was able to pay investors their dividends and interest payments was through the constant infusion of new investor money.”

Published on:

https://i2.wp.com/www.investorlawyers.net/blog/wp-content/uploads/2017/08/15.6.15-money-whirlpool-1.jpg?resize=300%2C300&ssl=1

 

Investors with losses in Healthcare Trust, Inc. a non-traded real estate investment trust (Non-Traded REIT) may have arbitration claims if a broker or advisor made a recommendation to purchase the shares without a reasonable basis or misled the customer as to the nature of the investment.  Healthcare Trust is an investment trust which seeks to acquire a diversified portfolio of real estate properties focusing primarily on healthcare-related assets including medical office buildings, seniors housing, and other healthcare-related facilities.

According to secondary market providers that allow investors to bid and sell illiquid products such as Non-Traded REITs, shares in Healthcare Trust are selling for about $14.99 per share – which represents a significant principal loss compared with the offering price of $25.00.

Published on:

https://i0.wp.com/www.investorlawyers.net/blog/wp-content/uploads/2017/10/15.2.17-piggybank-in-a-cage.jpg?resize=290%2C300&ssl=1On June 30, 2017, the former CFO of American Capital Properties Inc. (“ARCP”), Brian Block, was found guilty of securities fraud and related crimes in connection with reporting false numbers in quarterly filings with the Securities and Exchange Commission (“SEC”).  The verdict was handed down following a nearly three-week trial held in the U.S. District Court for the Southern District of New York.  A jury returned the verdict less than a day after closing arguments.  Mr. Block was convicted of one count of securities fraud, two counts of filing false reports with the SEC, two counts of filing false certifications, and one count of conspiracy.

In 2014, ARCP was set to file its financial statement for the second quarter, when an employee informed Block and Chief Accounting Officer Lisa McAlister that there was a methodological error in some of the firm’s calculations and that its average funds from operations (or AFFO, a key financial metric for real estate investment trusts) was overstated by roughly $0.03 per share.  Despite this guidance, no corrective action was taken to address the issue of overstated AFFO.  On October 29, 2014, ARCP shares plunged as much as 37% — effectively wiping out roughly $4 billion in market value — after the company publicly stated that certain of its employees had concealed accounting errors.

Following the $23 million accounting scandal, ARCP, a non-traded REIT sponsor, changed its name to VEREIT (from the Latin word “veritas” for truth).

Published on:

Investors in VGTel, Inc. (“VGTel”) (OTC PINK: VGTL) may be able to recover their losses through initiating a securities arbitration proceeding with the Financial Industry Regulatory Authority (“FINRA”) if they were sold VGTel shares via misrepresentations or if a stockbroker or financial advisor made an unsuitable recommendation to purchase VGTel shares.

https://i2.wp.com/www.investorlawyers.net/blog/wp-content/uploads/2017/10/15.6.11-building-explodes-300x200.jpg?resize=300%2C200&ssl=1
VGTel has been the subject of a recent SEC Complaint in the Southern District of New York (as of January 2016).  Specifically, the SEC has alleged that, from 2012-2014, Mr. Edward Durante defrauded at least fifty unsophisticated investors in New England, Ohio and California of at least $11 million through the sale of VGTel securities.  The Complaint alleges that Durante essentially controlled VGTel (which was little more than a shell company), and in furtherance of a fraudulent scheme, sold approximately six million shares of VGTel stock using several false names, including ‘Efran Eisenberg’ and ‘Ted Wise.’  Further, the SEC Complaint alleges that Mr. Durante bribed certain financial advisors in order to encourage these brokers to steer their clients into purchasing VGTel stock.

FINRA rules mandate that member firms implement and act upon reasonable safeguards and compliance programs designed to ensure proper supervision of a broker’s activities during the time a broker is associated with that particular brokerage firm.  Accordingly, a brokerage firm that fails to properly supervise its registered representatives may well be liable for investment losses sustained due to the malfeasance or misconduct of certain brokers.

Published on:

Stockbroker arbitration lawyers are looking into accusations made against First Allied Securities, Inc. and broker Rami Yahalom regarding risky investments in AE Luxtera Investments II, LLC, a private technology start-up company. According to reports of a FINRA arbitration claim filed by investors, First Allied and Yahalom offered Luxtera to customers without disclosing sufficient information regarding the investment.  

Allegations Made Against First Allied Regarding Private Equities

According to the allegations, Luxtera was represented as a late stage equity, which means that it was due for an initial public offering (IPO) within 12-36 months. Additionally, the complaints report that First Allied indicated expected revenues in excess of $300 million, when in reality the company had not achieved sales above $1 million.

This is not the first time stockbroker arbitration lawyers have received complaints regarding First Allied and private equity investments.  If you suffered significant losses as a result of doing business with Rami Yahalom or First Allied, or received an unsuitable recommendation of advanced private equities from another stockbroker or financial advisor, 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 the Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.