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Crown Capital Securities pays over $250,000 to investor for REIT investments

shutterstock_211701538Fitapelli Kurta is interested in speaking to investors who have complaints regarding Crown Capital Securities or the following REITs: Grubb & Ellis Healthcare REIT, G-REIT, USA Self Storage REIT, CNL Senior Housing REIT, NNN Value Fund REIT, Inland Western REIT or Inland American REIT.

Crown Capital Securities is an independent broker-dealer firm registered with both the SEC and FINRA. Crown Capital Securities is incorporated under the laws of Delaware and its main office is located in Orange, California. Crown Capital Securities has offices in 51 U. S. states and territories.

On August 20, 2012, an investor filed a complaint against Crown Capital Securities alleging that the firm made misrepresented material facts related to the sale of Grubb & Ellis Healthcare REIT, G-REIT, USA Self Storage REIT, CNL Senior Housing REIT, NNN Value Fund REIT, Inland Western REIT and Inland American REIT. These REITs were offered by Crown Capital Securities. On August 22, 2014 a FINRA arbitration panel awarded the investor $277,469.

The Financial Industry Regulatory Authority (FINRA) has issued a warning to investors who have invested in, or are considering investing in, REITs like Grubb & Ellis Healthcare REIT, G-REIT, USA Self Storage REIT, CNL Senior Housing REIT, NNN Value Fund REIT, Inland Western REIT and Inland American REIT. Specifically, FINRA warns, “When it comes to investing in non-traded REITs, selling points such as the opportunity for capital appreciation, diversification and the allure of a robust distribution can be enticing. But investors should balance these selling points against the numerous complexities and risks these investments carry.” For example, non-traded REITs have no public trading market. As a result, they are illiquid investments meaning it may be difficult to sell quickly at a price even close to its market value.

Given the high risk nature of these investments, investors should note that non-traded REITs, like Grubb & Ellis Healthcare REIT, G-REIT, USA Self Storage REIT, CNL Senior Housing REIT, NNN Value Fund REIT, Inland Western REIT and Inland American REIT, are almost never suitable for short term investors and in most cases, even long term investors, unless they are willing to assume the great risk of illiquidity.

Additionally, while REITs do not pay taxes at the corporate level, they are still taxed on an individual level, resulting in property taxes that can be as high as 25% of the total operating expenses.

If you or someone you know has lost money in a REIT offered by Crown Capital Securities, or any other broker-dealer firm, please contact the securities and investment fraud law firm of Fitapelli Kurta. Our law firm prosecutes cases nationwide on behalf of investors who have been wronged by stockbrokers or broker-dealer firms. Do not wait. Time is of the essence in these claims and the law provides you with a limited window of opportunity to recover. Contact us today for your free consultation.

 

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