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Investor Complaints | Cabot Investment Properties, LLC

Cabot Investment Properties Misrepresented Track Record to Investors

The securities and investment fraud law firm, Fitapelli Kurta, is interested in speaking to investors who have lost money, or have complaints regarding Cabot Investment Properties, LLC., who not only exaggerated and possibly falsified its track record, but comingled investor funds according to a complaint filed by the Massachusetts Securities Commissioner.

Cabot Investment Properties, LLC sponsors various TIC (Tenant-In-Common) investments. Cabot Investment Properties, LLC was offered by various broker-dealer firms throughout the United States as a vehicle of avoiding capital gains taxes by way of a 1031 exchange. According to the Massachusetts Securities Division, Cabot Investment Properties distributed materially false materials to convince investors to invest in their tenant-in-common offerings.

Specifically, Cabot Properties sold the following TIC investments:

20 North Orange465 Cleveland Ave.
550 PolarisAddison Corp. Center
Ashtabula MallCentral Station
Corporate CenterCypress Creek Tower
Dadeland Tower NorthEast Town Mall
Falls PointFirst Tennessee Plaza
Multi-Tenant Office-Jackso MINorth Park & Southland Malls
North University DriveOak Grove Plaza
Old National BankPolaris Parkway
Trafalgar, AvionTurfway Ridge I & II
Two Florida Golf Course'sVillage Shoppes at Creekside

The Massachusetts Securities Division has recently filed a complaint against Cabot Investment Properties, LLC. The Enforcement Section of the Massachusetts Securities Division is seeking an order requiring Cabot Investment Properties, LLC to cease and desist from offering for sale any security in Massachusetts, permanently bar Cabot Investment Properties, LLC from conducting securities related business in Massachusetts, make rescission offers to all residents in Massachusetts who purchased TICs from Cabot Investment Properties, LLC and impose an administrative fine on Cabot Investment Properties, LLC.

According to the complaint, Massachusetts residents invested over $5 million in Cabot Investment Properties, LLC, most of whom were elderly customers who were seeking steady income for retirement. The complaint alleges Cabot Investment Properties, LLC committed fraud in the offer and sale of the TICs by misappropriating investment proceeds, misrepresenting Cabot Investment Properties, LLC’s background and the adverse consequences of the underlying TIC mortgages and minimizing the risk of the investment and the investor’s liability.

Specifically, Cabot Investment Properties, LLC falsely associated themselves with Cabot family, a well-known and prominent family in New England, as well as the well-established firm, Cabot Properties. Cabot Investment Properties, LLC also failed to tell investors that the mortgages underlying the TICs were to be turned into mortgage backed securities. Finally, Cabot Investment Properties, LLC also made misleading disclosure that downplayed the magnitude of the investor’s liability. Cabot Investment Properties, LLC marked the TICs as “non-recourse” which lead the investors to believe they would only be liable to the extent of their principal interest. In reality, the investors were exposed to much greater personal liability on the TICs.

The full complaint filed by the Massachusetts Securities Division Department of Enforcement can be read here.

If you or someone you know invested in Cabot Investment Properties, LLC through a stock broker or a broker-dealer firm, contact the attorneys at Fitapelli Kurta. We would love to further discuss the merits of any case you may have. Our consultations are always free and all cases are taken on a contingency fee which means we will not receive any money unless and until you recover your losses.

Time to file a claim is limited, so do not delay. Call (877) 238-4175 now to speak directly to an attorney.