CEO and Owner of First Capital Real Estate Trust, Inc. Charged with Fraud

Posted on December 20th, 2019 at 12:15 PM
CEO and Owner of First Capital Real Estate Trust, Inc. Charged with Fraud

From the Desk of Jim Eccleston at Eccleston Law LLC:

Suneet Singal, owner and CEO of First Capital Real Estate Trust, Inc., has been charged with fraud by the SEC.  According to the SEC Complaint, Singal purported to contribute a dozen hotels to the REIT and received a $15.2 million interest in the REIT’s operating partnership.  However, the SEC alleged that Singal lied when he claimed beneficial ownership of the hotels.  The Complaint stated that Singal’s misrepresentation caused the REIT’s net asset values to be overstated, which resulted in common shares being issued to investors at higher prices.  The Complaint further alleged that Singal made material misrepresentations and omissions regarding these hotels in several SEC filings.

Additionally, the SEC alleged that Singal engaged in fraud relating to a Business Development Company (“BDC”).  According to the Complaint, Singal acquired an ownership interest in the BDC’s external investment adviser, directed the BDC to make loans to an entity controlled by Singal, and then he used funds from those loans for his own personal use.  The loans, totaling $3 million, have not been repaid.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today. 

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, first capital real estate trust, reit, sec, bdc, business development company

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