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.
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