Investors in First Capital Real Estate Trust (“First Capital”), a publicly registered, non-traded real estate investment trust (formerly known as United Realty Trust) 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.
First Capital has a checkered history, most recently having faced litigation brought by the Securities and Exchange Commission (“SEC”) alleging violations of the federal securities laws. On July 13, 2021, the United States District Court for the Southern District of New York entered consent judgments against former First Capital officer Suneet Singal (“Singal”) and his entities, First Capital Real Estate Investments, LLC and First Capital Real Estate Advisors LP, as well as against First Capital Real Estate Trust Inc. SEC also barred Singal from the securities industry.
The federal judgment provides for Singal and First Capital Real Estate Investments, LLC and Singal to be jointly liable to pay $3.2 million in disgorgement and $676,400 in interest. Under the judgment, Singal is also solely liable to pay a monetary penalty of $3.2 million and agreed to be barred from serving as an officer or director of a publicly traded company for ten years.