Tagged with "REIT"

REIT Managed by AR Global Sees Steep Decline in Value

Posted on October 6th, 2020 at 12:14 PM
REIT Managed by AR Global Sees Steep Decline in Value

New York City REIT Inc. (the “NYC REIT”) has seen a sharp decline in share price over the last couple of months. The NYC REIT, which was started in 2013, had an offering price of $25 when it was first listed on the Nasdaq in August

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LPL Suspends Sales of Nontraded REITS and Interval Funds

Posted on April 27th, 2020 at 5:17 PM
LPL Suspends Sales of Nontraded REITS and Interval Funds

Due to the uncertain conditions created by the outbreak of COVID-19, LPL Financial has stopped selling several nontraded real estate investment trusts (“REITs”) as well as some publically traded property interval funds.  Interval funds, a type of closed-end fund whose shares are not traded on a secondary market, had been growing in popularity over the last couple years.  Interval funds are often comprised, at least in part, by nontraded REITs.

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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

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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SEC Hits Troubled Texas REIT with Wells Notice

Posted on October 28th, 2016 at 9:08 AM
SEC Hits Troubled Texas REIT with Wells Notice

The Securities and Exchange Commission has issued a Wells notice against troubled Texas real estate investment trust United Development Funding IV (UDF IV) as well as certain individuals associated with the REIT. 

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Hedge Fund Attacks Texas REIT as ‘Ponzi-Like Scheme’

Posted on February 19th, 2016 at 12:19 PM
Hedge Fund Attacks Texas REIT as ‘Ponzi-Like Scheme’

This past week, Texas Hedge fund manager Kyle Bass has stepped up his conflict with United Development Funding IV (UDF), a public nontraded real estate investment trust also based within Texas. Bass, who runs Hayman Capital, recently disclosed that he is an anonymous short seller going after UDF.

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LPL Fined $3.6 million for Nontraded REIT Sales

Posted on April 16th, 2015 at 10:57 AM
LPL Fined $3.6 million for Nontraded REIT Sales

New Hampshire securities regulators fined LPL Financial  $3.6 million for allegedly selling unsuitable real estate investments to elderly clients.

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Independent Brokerage Firms Put Schorsch in Penalty Box

Posted on November 21st, 2014 at 9:18 AM

According to numerous reports, independent broker dealers are suspending sales of products from the sprawling Schorsch following news of a $23 million fraud at American Realty Capital Properties (ARCP).

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