Investor Complaints: TSG Real Estate, LLC
The securities and investment fraud law firm is interested in hearing from investors who have complaints regarding TSG Real Estate, LLC.
TSG Real Estate, LLC is a limited liability company. It was formed in 2003 under the laws of Delaware. TSG Real Estate’s main office is located in Chicago, Illinois. From 2006 and 2007, TSG Real Estate, LLC purchased real property for resale to investors who would own the property as tenants in common.
TSG Real Estate, LLC entered a consent order with the State of Washington Securities Department on March 15, 2010. The consent order stated that TSG Real Estate, LLC misrepresented and omitted material facts to investors when offering membership interests in TSG Real Estate, LLC. According to the order, from 2006 to 2007, TSG Real Estate, LLC offered and sold a total of $13,415,000 worth of membership interests in TSG Capital Fund I, LLC to approximately 95 investors. (TSG Real Estate was the sole member of TSG Capital Fund I Manager, LLC, which offered and sold LLC membership investments in order to raise capital for real estate acquisitions by TSG Real Estate and its companies.)
According to the Consent Order, TSG Real Estate, LLC and Robert Wayne Hannah led investors to believe the real property that was being financed would be sold to generate 3% interest per month for TSG Capital or 10% of the amount financed, whichever was greater. However this was not true. TSG Real Estate, LLC also failed to tell investors of the specific intended use of investor funds and failed to informed investors of which specific properties or projects their funds would finance. Finally, TSG Real Estate, LLC used investor’s funds to make $3.2 million in payments to Group I Automotive, intending to buy various car dealerships. However, unbeknownst to investors, the payments became nonrefundable when TSG Real Estate, LLC was unable to obtain additional financing, and as a result, the deposits were forfeited.
Investors who have lost money investing with TSG Real Estate, LLC may be able to recover their losses by way of arbitration through the Financial Industry Regulatory Authority (FINRA). The law firm of Fitapelli Kurta exclusively handles arbitrations before FINRA on behalf of investors who have fallen victim to unsuitable investment recommendations by stockbrokers and broker-dealer firms. Our law firm has recovered millions on behalf of investors nationwide. All cases are taken on a contingency fee basis, which means we do not receive any money unless and until you recover some of your losses.
Our consultations are always free so do not delay. Call (877) 238-4175 for your free, confidential consultation. Time is of the essence, so call now to speak directly to an attorney.