As a follow up to our recent post on American Realty Capital, brokerage firms are suspending sales of the non-traded real estate investment trust (Non-Traded REITs) distributed by American Realty Capital in order to conduct due diligence on the REIT product, according to a recent article in InvestmentNews. Several firms who currently offer American Realty Capital REITs are Securities America, Inc. INVEST Financial Corp, National Planning Corp and Investment Centers of America.
Amongst these American Realty Capital REITs include Phillips Edison-ARC Grocery Center REIT II and Cole Capital Properties V. This impromptu pause in sales comes on the heels of a $23 million accounting error made by American Realty Properties that resulted of the termination of its CFO (Chief Financial Officer).
American Realty Capital Properties has also become subject of an SEC investigation as a result of this accounting errors. According to an article on Yahoo! Finance, “Investors can file this under the ‘nothing is so bad that it can’t get worse’ for American Realty shareholders . . .” The article goes on to state that the investigation of American Realty will most likely cause a sharp decline in the ability of Cole to raise revenue for its non-traded REIT business. This could potentially mean a decrease or cessation of investor payouts.
If you are invested in an American Realty Capital REIT and you were not fully informed of the risks associated with a REIT, you may be entitled to compensation for your loss. The law provides a path of recovery for investors who lose money as a result of fraudulent brokers and their firms who fail to supervise those brokers, however time is limited to file your claim and the process can be taxing on investors. The nationally renowned securities fraud law firm, Fitapelli Kurta has extensive experience handling these types of cases. Our firm specializes in representing investors nationwide for arbitration claims before FINRA. All cases are taken on a contingency fee basis, so if you don’t recover, we don’t recover. Call now to speak directly to an attorney and discuss the merits of your case at no cost whatsoev