NEW YORK, May 22, 2013 (GLOBE NEWSWIRE) -- Law Office of Christopher J. Gray, P.C., a New York City law firm handling arbitration claims on behalf of investors throughout the United States, has filed Financial Industry Regulatory Authority ("FINRA") arbitration proceedings on behalf of investors who allege that registered representatives of Ameriprise Financial Services Inc. (NYSE:AMP) brokerage recommended unsuitable investments in non-traded REITs.
Suitability claims arise when stockbrokers or investment advisors recommend investments that are not appropriate for an investor's financial circumstances, risk tolerance, or investment goals. Cases filed by the Gray firm allege that in certain circumstances, Ameriprise lacked a reasonable basis to recommend a non-traded REIT known as Inland Western REIT (now known as Retail Properties of America) to customers.
Alleged violations involving non-traded REITS were also the subject of Massachusetts securities regulator William Galvin's settlements with five stock brokerages, including Ameriprise. Under the settlement, Ameriprise agreed to pay $2.6 million in restitution to investors as well as a fine of $400,000.
"Our investigation into the sales of REITs, triggered by investor complaints, showed a pattern of impropriety on the sales of these popular but risky investments on the part of independent brokerage firms where supervision has historically been difficult to monitor," Mr. Galvin said in a statement.
While the settlement was limited to Massachusetts investors, investors in other states may have a right to seek to recover money though FINRA arbitration proceedings.
Reportedly, many seniors and other investors are being persuaded to invest in non-traded REITs lured by promises of a healthy and steady yield of income from the REITs. However, some brokers and advisors may not disclose risks of the investments, including that investors could lose some or all of their investment and that income distributions may be suspended or stopped completely.
Another problem investors face with REITs is that they may need access to their funds, but many non-traded REITs have suspended redemptions, leaving investors with limited options in the event that they need to sell REIT shares to access their funds. However, this illiquidity (meaning difficulty in re-selling) non-traded REITs is not always explained to investors at the time of sale.
Attorneys at Law Office of Christopher J. Gray, P.C. are available to review possible cases involving unsuitable sales of non-traded REITs. Investors may contact Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or firstname.lastname@example.org for a confidential, no-obligation consultation. Additional information concerning possible arbitration claims involving non-traded REITs is accessible at www.investorlawyers.net.
CONTACT: Law Office of Christopher J. Gray, P.C. (866) 966-9598Source:Law Office of Christopher J. Gray, P.C.