Have You Suffered Losses in Hospitality Investors Trust REIT?
Recovering Losses After Investing in Hospitality Investors Trust (HIT)
Hospitality Investors Trust, Inc., is a publicly registered, non-traded real estate investment trust (“REIT”). The trust filed for Chapter 11 bankruptcy in 2021 after stocks dropped to under $1 a share. Investors in Hospitality Investors Trust, Inc. (“HIT”) may have a valid claim and are encouraged to contact an attorney immediately to discuss their legal options.
Meyer Wilson has handled over 1,000 claims for aggrieved investors, recovering in excess of $350 million on behalf of clients nationwide. Non-traded REITs are notoriously high-risk investments that are most often unsuitable for retail investors. Individuals who were recommended or sold shares of HIT REIT as a safe, conservative investment may be able to recover losses.
If you sustained losses after investing in HIT REIT, the investor claims attorneys at Meyer Wilson might be able to help. Contact our office at (800) 738-1960 for a free, no-obligation consultation.
What Is HIT REIT?
The Hospitality Investors Trust, Inc. was a non-traded real estate investment trust (“REIT”) that, according to its website, owned “a diversified portfolio of strategically-located hotel properties.” Investments were focused on the select-service market of the hospitality sector.
The trust, formerly known as American Realty Capital Hospitality Trust, filed for Chapter 11 bankruptcy in an effort to restructure its over $1 billion debt. A final decree was ordered on Jul 1, 2021. The value of the stock dropped substantially from its original price of $25 per share to less than $1. Investors are unlikely to recover their principal in light of the bankruptcy.
How to Recover Losses Related to HIT REIT
Several investors have alleged that when their broker or financial advisor recommended and sold investment in the Hospitality Investors Trust REIT, they made false or misleading statements. Some investors were informed that the investment was safe and conservative.
In truth, REITs are almost always unsuitable for the average investor as they present a high degree of risk and may be illiquid. These complex investments are best suited for sophisticated retail investors who are well-informed of the potential for loss of principal. Financial advisors and stockbrokers often recommend these products because of their high up-front commissions and fees, which many consumers are unaware of at the time of purchase.
HIT REIT investors may be able to recover losses through a FINRA arbitration claim. At Meyer Wilson, our attorneys have handled countless cases for investors who have sustained financial losses as a result of stockbroker misconduct, fraud, misrepresentation, or unsuitable recommendations. If you are one of the thousands of investors who lost money after being recommended and sold HIT REIT, contact our office at (800) 738-1960. All consultations are free and without obligation to retain our services. Let the experienced investment fraud attorneys at Meyer Wilson evaluate your legal claim at no cost. Matters are handled on a contingency fee basis, meaning there are no fees unless we recover money on your behalf. Call now to get started.
Can I Get My Money Back After Investment Fraud?
Recovering Losses After Investment or Securities Fraud
As an investor, any financial losses can be devastating. When those losses are related to fraud or misconduct, the wrongdoing should be held accountable. Depending on the circumstances, a victim of investment misconduct might be entitled to financial compensation for losses suffered as the result of negligence, mismanagement, illegal conduct, or other forms of wrongdoing.
At Meyer Wilson, our securities lawyers can help determine if you have a valid claim for damages and who you may be able to hold liable for your losses. We will fight for you to hold these parties accountable for their wrongdoing and help you get the largest possible recovery based on the circumstances of your case. Contact our office today at (800) 738-1960 for a free consultation.
How Do I Recover Losses After Investment Fraud?
The best way to recover losses related to suspected fraud or misconduct is by retaining an experienced investment fraud lawyer. An attorney can help determine if you have a valid claim and assess your legal options for financial recovery.
Unfortunately, investment fraud and stockbroker misconduct are more prevalent than most people realize. It can cost an investor tens of thousands of dollars in an instant. These bad actors take advantage of unsuspecting investors who rely on their broker or financial advisor to act in their best interest.
What Are the Types of Investment Fraud or Investment Misconduct?
There are several forms of investment fraud. It can be difficult to detect fraud or misconduct until there are actual losses from an investment or trade. It is important to remain diligent on all of your accounts, routinely checking for any signs of wrongdoing.
Common types of investment fraud or misconduct that may result in liability include:
Unauthorized or excessive trading
Failure to supervise
Breach of fiduciary duty
Misrepresentation and omissions of material facts
Conflicts of interest
Violation of state or federal securities laws
If you have suffered losses due to any form of suspected investment fraud or abuse, you might be entitled to financial recovery. When a broker, investment adviser, or financial institution engages in one of these acts, they need to be held responsible.
Why Hire an Attorney?
Investment misconduct claims can be challenging to prove without the help of a qualified attorney. An attorney can review your case and determine the best course of action to get your money back. Brokers, investment advisers, and their employers may go to great lengths to cover up their wrongdoing and will aggressively defend themselves. You need a lawyer who will conduct a thorough investigation to ensure that all liable parties are held responsible.
Depending on your case, you may be able to recover money through arbitration before the Financial Industry Regulatory Authority (FINRA) or another arbitration forum. FINRA arbitration is one of your best chances for recovering losses related to investment misconduct at the hands of a brokerage firm or broker. An experienced lawyer can help you understand your rights and how to pursue a claim.
Hiring an Investment Fraud Lawyer
At Meyer Wilson, we focus on investor claims, having recovered over $350 million for victims of investment fraud and misconduct. Our nationally-recognized legal team will not rest until you receive the best possible outcome in your case. If you or a loved one has sustained losses due to investment fraud or adviser misconduct, contact our office at (800) 738-1960 for a free consultation.
Meyer Wilson Representing Investors in Annuity Misrepresentation Case
Meyer Wilson recently filed a securities arbitration case against the Leaders Group, Inc. concerning allegations that its former registered representative, Harold Schwartz, made material misrepresentations regarding the sale of an annuity to firm customers.
Schwartz worked out of the Leaders Group office in Littleton, Colorado from 1995 through June 2015. He is currently registered at Royal Alliance Associates, Inc. The allegations in the case are that Schwartz made certain untrue guarantees to his clients that a variable annuity promised the doubling of its initial investment in ten years from the date of purchase.
If you purchased a variable annuity from Harold Schwartz on the promise that your investment would double in ten years’ time, Meyer Wilson is interested in speaking with you. We have spent two decades working with victims of fraud across the United States, and through our efforts, we have recovered more than $350 million for our clients. Set up a free, in-depth consultation by sending us the details of your situation through our online form.
Did Michael Chandler of Infinex Investments Inc. Sell You Non-Traded REITs?
Meyer Wilson is investigating allegations that Michael Chandler, a Mississippi-based broker and investment adviser, recommended unsuitable, illiquid investments, including non-traded Real Estate Investment Trusts (REITs). Chandler currently works for Infinex Investments Inc.
Chandler has been the subject of two customer disputes, one of which is still pending. Both allege non-traded REITs were inappropriately sold to Chandler’s customers. Infinex Investments Inc. settled one dispute after a customer alleged Chandler failed to disclose risks associated with non-traded REITs.
Non-traded REITs are highly risky, illiquid, and rarely suitable for most investors. They are not traded on a public exchange and cannot be sold readily in the market. FINRA has warned that this lack of liquidity creates a level of risk that is not suitable for most investors. Brokers are aware of why non-traded REITs are highly risky – they carry high fees, have limited liquidity, unclear distributions, valuation problems, and limited diversification.
Brokers have a duty to only recommend suitable investments in the best interest of their clients, and also to obtain sufficient information through reasonable diligence to ascertain a client’s investment profile. Failure to do so may result in liability for recommending unsuitable investments.
If you suffered losses in an account managed by Michael Chandler, the experienced attorneys at Meyer Wilson would like to speak with you. Contact us today for a no-cost, no-pressure consultation to discuss your legal options.
Did Gustavo Miramontes Make Unauthorized and Unsuitable Trades in Your Account?
Meyer Wilson is investigating allegations that California-based broker Gustavo Miramontes engaged in unauthorized, unsuitable trading. Miramontes currently works for Oppenheimer & Co. Inc. He worked for Wedbush Securities, Inc. up to 2018.
Miramontes has been the subject of multiple customer disputes alleging unauthorized and unsuitable trades in customers’ accounts. Five disputes are still pending. His previous employers settled complaints for similar behavior, including a $431,401.45 settlement by Wedbush Securities Inc.
Unauthorized trading occurs when your financial professional makes trades on your account without your authorization. Your broker must obtain your permission before buying or selling anything for your account unless you’ve signed a written trading authorization that allows your broker to buy and sell securities in your account without having to contact you. However, that does not mean your broker can misuse or exceed this authority. Brokers and their firms who make unsuitable or unauthorized trades may be held liable for any sustained financial losses.
The securities and investment fraud lawyers at Meyer Wilson have the skills and experience that are specifically suited to the needs of victims of investment fraud. If you suffered losses due to Gustavo Miramontes’ unauthorized and unsuitable trading, contact us today for a free consultation to discuss your legal options.
Did You Lose Money in an Account Managed by Former Cetera Investment Advisers Broker Hui Zhang?
Meyer Wilson is investigating allegations that California-based broker and investment adviser Hui Zhang misrepresented in the recommendation of unsuitable, illiquid Real Estate Investment Trusts (REITs), including ARC Healthcare Trust. Zhang currently works for Independent Financial Group, LLC. He previously worked for Cetera Investment Advisers LLC.
Three customer disputes were filed against Zhang in connection with his work at Cetera Investment Advisers LLC. One dispute was settled and two are currently pending. Because non-traded REITs do not trade on a public exchange, the underlying real estate must be sold before investors can get their money back. The lack of liquidity makes them highly risky for investors. Regulators have warned that non-traded REITs are unsuitable for most investors. Healthcare Trust, Inc. (formerly ARC Healthcare Trust) is a non-traded REIT that purchases a portfolio of healthcare related real estate properties.
Investment advisers like Hui Zhang are fiduciaries to their clients and must act only in their clients’ best interests. If you suffered losses as a result of Zhang’s misrepresentation, the experienced securities and investment fraud attorneys at Meyer Wilson are interested in hearing from you. Contact us today for a no-cost, no-pressure consultation to discuss your legal options.
Did Michael May Engaged in Unsuitable Trades in Your Account?
Meyer Wilson is investigating allegations that Michael May, a New York-based broker, engaged in excessive and unsuitable trading in customer’s accounts, with significant margin exposure and interest. May has been working for VCS Venture Securities since October 2021. He previously worked for Joseph Stone Capital.
Michael May was recently suspended by FINRA for three months in connection with allegations that he engaged in excessive and unsuitable trading, including the use of margin, in a customer’s account.
A previous customer dispute alleging May recommended unsuitable and unauthorized transactions was settled.
If you suffered financial losses due to Michael May’s account management, the experienced securities and investment fraud attorneys at Meyer Wilson would like to speak with you. Contact us today for a free consultation to discuss your legal options.
The Investment Fraud Attorneys at Meyer Wilson Are Investigating Claims and Speaking to Victims of Philip Incorvia’s Alleged Ponzi Scheme
Meyer Wilson is investigating claims that Philip Incorvia, a long-time broker at Henley & Co. out of New York, may have sold clients fraudulent investments. Incorvia died in August 2021. After his death, victims have come forward to allege that Incorvia sold them what now appear to be fictitious funds, including Vanderbilt Realty Investors and Jefferson Resources. Incorvia worked out of a branch of Henley & Co. in Shoreham, New York from 2006 until his death in 2021.
Public records show that Incorvia had previously been the subject of two customer complaints and a regulatory action in which Incorvia was fined and sanctioned for allegedly signing customers signatures on paperwork without their knowledge or approval.
The investments in Vanderbilt Realty Investors and Jefferson Resources are alleged by investors to be a Ponzi scheme - a fraudulent investment operation that pays “returns” to investors from their own money, or money paid by later investors, rather than from an actual earned revenue. These schemes are illegal and operate on the “rob Peter to pay Paul” principle, where money from new investors is used to pay off the previous investors.
Once the scheme itself unravels—as they always do—investors are left asking themselves, “How can I get my money back?”
Brokerage firms, like Henley & Co., can be held responsible for the losses sustained by victims of the fraud if the firm failed to adequately supervise its broker. Brokerage firms may not turn a blind eye while their representatives sell sham investments otherwise run rampant with its customers’ assets. They have an affirmative duty to implement and operate a robust supervisory system that adequately monitors and detects this type of misconduct. If their supervisory systems fail, they can be held liable for failing to meet the standard of care owed to investors.
Proving that a brokerage firm was negligent, and that their negligence allowed broker misconduct, can be difficult and often requires extensive investigation on the part of a qualified attorney. The investment fraud attorneys with Meyer Wilson represent investors nationwide and have recovered millions of dollars in losses for clients. If you lost money working with Philip Incorvia, we would like to talk to you about your legal options. Call us or complete our online form for a free case evaluation.
Did Mark Former Make Unauthorized Trades or Recommend Unsuitable Investments on Your Account?
Meyer Wilson is investigating allegations that Illinois-based broker Mark Former engaged in unauthorized trading and recommended unsuitable investments, including direct investments into Direct Participation Programs (DPPs) and Limited Partnership (LP) interests. Former currently works for Oppenheimer & Co., where he has been registered since 2019. He previously worked for Morgan Stanley for nine years.
Former has been the subject of six customer disputes. Two disputes against Former are currently pending, alleging unauthorized trading and unsuitable investments. Unauthorized trading occurs when a broker makes trades on a client’s account without their permission or authorization. Brokers must obtain a client’s permission prior to making any purchases or sales for their account.
DPPs allow investors to make direct investments into different businesses. These non-traded, illiquid, pooled investments are highly risky. Brokers have a duty to recommend the purchase and sale of a security or investment that is in the best interests of their clients. Without a reasonable basis to believe a transaction is suitable for the customer based on their investment profile, a broker may be liable for recommending an unsuitable investment.
If Mark Former engaged in unauthorized trading or you lost money in unsuitable investments that he recommended and sold to you, the skilled investment fraud attorneys at Meyer Wilson would like to speak with you. Please contact Meyer Wilson today for a no-cost consultation to discuss your legal options.
Did You Lose Money in an Account Managed by Andrew Marschall?
Meyer Wilson is investigating allegations on behalf of investors that Andrew Marschall, a Maryland-based broker, recommended unsuitable investments of non-traded Real Estate Investment Trusts (REITs) to his customers. Marschall has worked for PNC Investments since December 2020. He previously worked for Capitol Securities Management, Inc.
A customer filed a complaint against Marschall alleging breach of fiduciary duty and that he recommended unsuitable shares in non-traded REITs while employed at Capitol Securities Management. The case is currently pending. Non-traded REITs are highly risky and not traded on a public exchange. Investors must wait until the underlying real estate is sold to get their money back. A broker must have a reasonable basis for believing that the recommendation to buy or sell non-traded REITs is suitable for the client.
Brokers have an obligation to consider enough information about individual customers’ financial situations prior to recommending the purchase or sale of a security or investment. They must also have a reasonable basis for believing that recommendation is suitable for them. A broker may be liable for recommending an unsuitable investment if they fail to do so.
If Marschall recommended you unsuitable investments and you lost money, the experienced securities and investment fraud lawyers at Meyer Wilson would like to speak with you. Contact us today for a no-cost consultation to discuss your legal options.