REIT fraud attorney

Eric Felsenfeld Has Alternative Investment Complaints

January 22, 2024 | by Staff Attorney

Broker Eric Felsenfeld (Felsenfeld), currently employed at Ameriprise Financial Services, LLC (Ameriprise) and formerly registered with Kingswood Capital Partners, LLC (Kingswood) has been subject to at least three customer complaint during the course of his career. The complaints alleges that Felsenfeld made unsuitable trading recommendations, and recommending an overconcentration of non-traded Real Estate Investment Trusts (REITs) and Business Development Companies (BDCs) among other potential high risk alternative investments.

According to a BrokerCheck report, in February 2021, a customer alleged that Hancock recommended unsuitable investments in BDCs and REITS. The matter settled for $30,000.

In July 2023 another customer complained of breach of contract, breach of fiduciary duty, negligence and negligent misrepresentation, negligence, and violation of regulation best interest. The complaint alleged $22,000 in damages and settled for $22,000.

Broker Brian Roth Has Alternative Investment Customer Complaints

October 10, 2022 | by Staff Attorney

Advisor Brian Roth (Roth), currently employed by brokerage firm Newbridge Securities Corporation (Newbridge Securities) has been subject to at least nine disclosures including four customer complaints, one regulatory action, and four judgement or liens. According to a BrokerCheck report some of the customer complaints concern alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products and have recovered in excess of $50 million in investor losses.

In June 2022 a customer complained that Roth violated the securities laws by alleging that Roth made recommendations that violated rules such as suitability, negligence, fraud, failure to supervise, violation FINRA rule 2010, and breach of contract. The claim is currently pending and the investor seeks $1,500,000 in damages.

In April 2020 a customer complained that Roth violated the securities laws by alleging that Roth made recommendations that violated rules such as breach of fiduciary duty, negligence, failure to supervise, violation FINRA rules, and breach of contract. The claim is currently settled for $100,000.

Broker Jerry Tuma Has Customer Suitability Complaints

October 6, 2022 | by Staff Attorney

Advisor Jerry Tuma (Tuma), currently employed by brokerage firm Independent Financial Group, LLC (Independent Financial) has been subject to at least five disclosures and customer complaints. According to a BrokerCheck report the customer complaints concern investment advisory activity and one complaint involves alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products and have recovered in excess of $50 million in investor losses.

In January 2022 a customer complained that Tuma violated the securities laws by alleging that Tuma made investment recommendations that were not suitable and was not in line with stated objectives. The claim is currently pending and the investor seeks $200,000 in damages.

In January 2022 a customer complained that Tuma violated the securities laws by alleging that the client engaged CFS in an advisory relationship beginning in 12/2017. The client also alleged her account was not managed in accordance with her best interests, that certain management and product fees were excessive, and in inappropriate products given her risk profile. The claim is currently settled for $14,906 in damages.

Financial Advisor David Bibo Has REIT Investor Complaints

September 22, 2021 | by Staff Attorney

Advisor David Bibo (Bibo), currently employed by brokerage firm Western International Securities, Inc. (Western International) has been subject to at least four customer complaints, one termination for cause, and two criminal matters during the course of his career. According to a BrokerCheck report several of the customer complaints concern alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

In September 2020 a customer complained that Bibo violated the securities laws by alleging that Bibo made misleading recommendations and unsuitable recommendations in alternative investments. The claim alleges $300,000 damages, and is currently pending.

In December 2019 a customer complained that Bibo violated the securities laws by alleging that Bibo made unsuitable recommendations in alternative investments. The claim alleges $1,500,000 damages, and is currently pending.

In May 2019 a customer complained that Bibo violated the securities laws by alleging that Bibo made an unreasonable investment. The claim alleges $50,000 damages and was denied by the firm.

Ameriprise Financial Advisor Kevin Houser Has REIT Investment Complaints

May 31, 2021 | by Staff Attorney

Advisor Kevin Houser (Houser), currently employed by brokerage firm Ameriprise Financial Services, LLC (Ameriprise) has been subject to at least four customer complaints during the course of his career. According to a BrokerCheck report several of the customer complaints concern alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

In November 2020 a customer complained that Houser violated the securities laws by alleging that Houser made misleading recommendations in various REITs and BDCs including Franklin Square, Cole Credit Property Trust IV, and CIM REIT. The claim involves alternative investments and alleges $358,000 damages, and is currently pending.

In July 2020 a customer complained that Houser violated the securities laws by alleging that Houser made misleading recommendations in various REITs, BDCs, and an annuity including Franklin Square. The claim involves alternative investments and alleges $300,000 damages, and is currently pending.

Ameriprise Financial Advisor Gary Ginsberg Has REIT Investment Complaints

May 24, 2021 | by Staff Attorney

Advisor Gary Ginsberg (Ginsberg), currently employed by brokerage firm Ameriprise Financial Services, LLC (Ameriprise) has been subject to at least four customer complaints and one regulatory action during the course of his career. According to a BrokerCheck report several of the customer complaints concern alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

In September 2020 a customer complained that Ginsberg violated the securities laws by alleging that Ginsberg made an unreasonable due diligence review of an alternative investment. The claim involves alternative investments, alleges $100,000 damages, and is currently pending.

In August 2020 a customer complained that Ginsberg violated the securities laws by alleging that Ginsberg made an unsuitable recommendation to purchase a non-traded REIT. The claim involves alternative investments and alleges $5,000 damages and was denied by the firm.

RW Holdings NNN REIT Suffer Losses – Investment Attorneys

August 10, 2020 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating recommendations by brokerage firms for their clients to invest in RW Holdings NNN REIT Inc., formerly known as Rich Uncles NNN REIT Inc.,- a non-traded real estate investment trust (non-traded REIT). RW Holdings originally sold shares for $10.00. The fund claims to have an estimated net asset value per share of $6.00. However, secondary market trading would likely value this REIT substantially lower in value.

As a background, RW Holdings NNN REIT’s real estate portfolio totals 2.4 million square feet, 45 properties divided into 19 retail properties, 14 office properties, and 12 industrial properties located in 14 states. The portfolio also includes approximate 72.7 percent tenant-in-common interest in an office property in Santa Clara, California.

In May 2020 The REIT said that it was suspended its offering and its plans to declare a revised net asset value per share later that month, as well as a revised distribution rate. RW Holdings expected that both will be lower due to the impact of the COVID-19 pandemic.

In a statement the REIT claimed “Given our inability to collect 100 percent of contractual rents, we are re-evaluating our current distribution rate…,”

More recently, the REIT published the new share valuation showing substantial losses and write downs and reduced its dividend ratio from $0.7 shares per ordinary share to $0.35 shares – a substantial decline.

Gary Barth Has Complaint Over Alternative Investment Sales Practices

June 29, 2020 | by Staff Attorney

Advisor Gary Barth (Barth), currently employed by Ameritas Investment Company, LLC (Ameritas) has been subject to at least four customer complaints during the course of his career. According to a BrokerCheck report one customer complaint concerns alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

In November 2019 a customer complained that Barth violated the securities laws by alleging that Robare engaged in sales practice violations related to an misrepresentation in the sale of REITs. The claim alleges $600,000 and is currently pending.

According to BrokerCheck, Barth operates through several d/b/a entities including Barth Financial Wealth Management Group and Barth Financial. Barth also engages in other businesses including Kaufmann Building LLC, BAB Properties LLC, and Kearney Hub among other business related disclosures.

Mark Robare Has Complaint Over Alternative Investment Sales Practices

June 24, 2020 | by Staff Attorney

Advisor Mark Robare (Robare), currently employed by Triad Advisors LLC (Triad Advisors) has been subject to at least one customer complaint and one regulatory matter during the course of his career. According to a BrokerCheck report one customer complaint concerns alternative investments such as direct participation products (DPPs) like business development companies (BDCs), non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and private placements. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk, low reward products.

In March 2020 a customer complained that Robare violated the securities laws by alleging that Robare engaged in sales practice violations related to an unsuitable investment strategy beginning in 2014. The claim alleges $500,000 and is currently pending.

In September 2014 the SEC alleged that Robare used Fidelity Investments for clearing services for its advisory clients whereby Robare entered into a revenue sharing arrangement with Fidelity Investments in 2004. In this arrangement, Fidelity paid Robare to invest in certain mutual funds offered on Fidelity’s platform and Robare received nearly $400,000 from Fidelity from 2005 to 2013 as a result of the arrangement. The SEC claimed that Robare modified its Form ADV disclosures in December 2011 after Fidelity advised Robare that it would cease making payments if the arrangements were not disclosed. The SEC fined Robare $50,000.

Moody National REIT II Investors Suffer Losses – Investment Attorneys

June 8, 2020 | by Staff Attorney

The securities lawyers of Gana Weinstein LLP are investigating recommendations by brokerage firms for their clients to invest in Moody National REIT II (Moody REIT) – a non-traded real estate investment trust (non-traded REIT). According to secondary market quotes, Moody National REIT II has suffered massive losses and may only be worth less than 50 cents for every dollar purchased. In addition, Moody National REIT II no longer distributes a dividend. As is too common in the brokerage industry, firms fail to understand the flawed non-traded REIT business model and only recommend these products for their 7% commissions – not because they benefit investors.

Moody REIT has been particularly hard hit in the recent recession due to the nature of its investments properties. Moody National REIT II, Inc. was formed in July 2014 to acquire a portfolio of hospitality properties (a/k/a hotels and resorts) focusing primarily on the select-service segment of the hospitality sector with premier brands including, but not limited to, Marriott, Hilton and Hyatt.

According to the investments’ Fact Sheet, Moody REIT’s objectives are to “Preserve, protect and return stockholders’ capital contributions. Pay regular cash distributions to stockholders. Realize capital appreciation upon the ultimate sale of the real estate assets acquired by Moody National REIT II, Inc.”

However, according to filings with the SEC, on March 24, 2020, the Company’s board of directors approved the suspension of: (1) the sale of shares in Moody REIT; (2) the payment of distributions to the company’s stockholders; (3) reinvestments; and (4) the operation of the share redemption program.

Our firm often handles cases involving direct participation products (DPPs), private placements, Non-Traded REITs, and other alternative investments. These products are almost always unsuitable for middle class investors. In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments providing perverse incentives for brokers to sell high risk and low reward investments.