We are currently representing clients in FINRA arbitration lawsuits who have invested in the the Retreat at Stonecrest Tenants in Common (TIC). The investment was solicited to our elderly clients as a suitable and appropriate investment for significant percentages of the investors net worth.
Unfortunately, the investment has not performed as represented. The collections for the Lithonia, Georgia based property are only $168,865 a month while expenses are averaging $187,420 per month. The occupancy dropped to 89.8% per month, down from 94% in previous month. Unpaid/aging payables have accrued in the amount of $140,380. A double homicide on the property this summer has hurt occupancy. And all distributions are going to be suspended beginning on November of 2011. As an investment, The Retreat at Stonecrest is sinking fast along with client’s investments in the property.
Clients of brokerage firms like H&R Block (Ameriprise) were recommended the TIC investment. The primary motivation? Massive fees and commissions. The average TIC private placements has a 7% commission attached to the product. A mutual fund usually pays the financial advisor 1% to 2% annually. Unfortunately, the massive fees and commissions often incentives brokers and advisors to recommend an investment to clients even when it is not in their best interest and unsuitable. This is especially true for investors who are over the age of 60, retired or conservative.
Investors who were recommended the Retreat at Stonecrest can recoup their investment losses through the FINRA arbitration process. Since there are no class action lawsuits involving Stonecrest, the only option clients have to recover these losses is through FINRA arbitration claims against the brokerage firms who recommended the position.
To discovery what legal options exist, please contact our law firm at 312.332.4200
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