DALLAS, June 16, 2000 (PRIMEZONE) -- The chairman of the board of Income Opportunity Realty Investors Inc. (AMEX:IOT) and Transcontinental Realty Investors Inc. (NYSE:TCI) Friday said trading had been halted on the companies' stock because of confusion regarding recent news on an advisory firm to the companies.
Wednesday, the U.S. Attorney announced indictments against two people who were affiliated with Basic Capital Management Inc., an advisory firm for the two companies. However, both Income Opportunity and Transcontinental Realty said that both Mr. Gene Phillips and Mr. A. Cal Rossi, the two people indicted, have stepped down from the operations of Basic Capital Management.
Officials also noted that neither man holds a position as officer of Income Opportunity or Transcontinental Realty Investors.
"This hit us totally out of the blue," said Ted Stokely, chairman of the board of both companies. "Income Opportunity and Transcontinental Realty are successful, having reported gross assets of $87 million and $710 million respectively, as of March 31, 2000. It appears that there is confusion and a lot of false rumors being floated. These two companies are separate, profitable and have not been notified of any actions by any governmental authorities.
"It is the board's intent to protect the value of the shareholders' investment," Mr. Stokely said. "We have no reason to believe there is any wrongdoing. However, we want to make sure that is the case," said Mr. Stokely. "Therefore, we have hired independent counsel to review company operations."
Income Opportunity Realty Investors, Inc. and Transcontinental Realty Investors, Inc. are Dallas-based real estate investment trusts. IOT and TCI primarily invest in equity interest in real estate through direct ownership and partnerships. For more information, go to the companies' Web sites at www.incomeopp-realty.com or www.transconrealty-invest.com .