HOUSTON, Sept. 15, 2010 (GLOBE NEWSWIRE) -- The Law Firm of Shepherd Smith Edwards & Kantas LLP (www.sseklaw.com) continues to investigate claims for investors who were recommended to purchase Non-traded Real Estate Investment Trusts ("REITs"). These products have become popular investment vehicles for Financial Advisors. Many financial Advisors or brokers improperly market these investments to potential clients using aggressive marketing tactics touting safety and income. What usually is not explained is the potential risks or the big commissions/fees that are charged.
Unlike many other investments, Non-traded REITs do not trade on a stock exchange. As such, they can potentially become illiquid investment. In fact, even if they are not fully illiquid, most non-traded REITs impose a specified time frame in which investors are able to redeem their REIT shares. It is not uncommon for a REIT to be tied up for up to seven years. Lack of publicly available data is another issue, which leaves the consumer at the mercy of the broker and/or firm that initially marketed the product for information.
Furthermore, non-traded REITs are not always reliable source of income as many brokers promised. Recently, a number of non-traded REITs have eliminated dividends, and have suspended or curtailed share repurchase programs. Many more have simply lost significant value contrary to assurances by many brokers or advisors marketing these products. Some of these REITs include, but are not limited to, the following: Behringer Harvard MultiFamily I, Cole Credit Property Trust III, KBS I, Inland American, Cornerstone Growth & Income.
If you lost money in non-traded REITS, or REITs in general, as a result of your broker's recommendation of these products, contact the law offices of Shepherd Smith Edwards & Kantas LLP with any information or questions.
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and others with more than 100 years of combined experience in the securities industry and in securities law. Since 1990, we have represented thousands of investors nationwide to recover losses. We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. Collectively, we have represented clients in more than 1,000 matters in negotiation, mediation, arbitration and litigation.