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Fitapelli Kurta Files FINRA Arbitration Against Hantz Financial Services, Inc.

On August 4, 2014, the stock fraud attorneys at Fitapelli Kurta filed a FINRA Arbitration against Hantz Financial Services, Inc. on behalf of a retirement aged couple from Wisconsin.  According to the complaint, Hantz Financial Services recommended that the couple invest in a number of risky and illiquid Real Estate Investment Trusts (REITS), which have either suspended distributions or are completely worthless.

REITs were often marketed as income producing securities, however, many REITs lack liquidity.  This means that the securities are not traded on public exchanges and customers cannot sell them quickly.  Brokerage firms such as Hantz Financial Services, Inc. often recommend REITs to retirement aged customers by emphasizing the potential for income but fail to disclose the various risks associated with the investments such as their lack of liquidity.  REITs are highly complicated investment products that are not suitable for every investor – especially those that do not understand or were never apprised of their risks.

On January 21, 2014, Hantz Financial Services, Inc.  entered into a letter of acceptance, waiver and consent (the “AWC”) with FINRA, which detailed allegations of Hantz Financial Service’s failure to conduct appropriate due diligence with respect to a publically offered non-exchange traded real estate investment trust.  The AWC also alleges that Hantz Financial Services failed to establish and maintain a reasonably designed supervisory system for conducing due diligence on REIT transactions. In connection with the AWC, Hantz Financial Services agreed, among other things, to a censure and fine of $75,000.

If you or someone you know invested with Hantz Financial Services, Inc. and were placed in unsuitable or inappropriate investments that resulted in losses, please contact the investment fraud attorneys at Fitapelli Kurta.  The firm has experience in litigating investments related to REIT investments and may be able to help recover some or all of your investment losses.  Please contact the attorneys at Fitapelli Kurta today for your free consultation.



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