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.

Why Choose Meyer Wilson?

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.

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 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 You Lose Money With Former Voya Financial Broker William Johnson?

Meyer Wilson is investigating allegations that William Johnson, a Connecticut-based broker, made multiple unsuitable recommendations to purchase speculative, non-traded Real Estate Investment Trusts (REITs) and other alternative investments, including Commodity Futures. Johnson has been registered with Cadaret, Grant & Co., Inc. since 2019. He previously worked for Voya Financial Advisors, Inc. for twenty years.

Johnson has been the subject of eleven customer disputes. Five complaints are currently pending in FINRA arbitration, and all five allege that Johnson recommended his clients invest in unsuitable, high risk alternative investments.

If you suffered investment losses while working with William Johnson of Voya financial, the experienced investment attorneys at Meyer Wilson would like to speak with you. Working with the right legal team makes all the difference. Contact us today for a free consultation to discuss your legal options.

Were You Sold Non-Traded REITs by Former Cetera Broker Darryl Ferguson?

Meyer Wilson is investigating allegations that Illinois-based broker Darryl Ferguson recommended unsuitable, non-traded Real Estate Investment Trusts (REITs). Ferguson currently works for LPL Financial LLC. From 2007 to 2018, he was registered with Cetera Advisor Networks.

Ferguson is the subject of a $500,000 pending customer dispute, alleging that he recommended unsuitable, non-traded real estate investment trusts (REITs) to his customers.

Non-traded REITs are illiquid, highly risky, and not suitable for most investors. Promoters of non-traded REITs say they offer a sizeable annual return from rental income and that after 7-10 years, property can be sold and investors can get their money back. Unfortunately, that isn’t always the case. The downside to non-traded REITs is well-known in the securities industry – they carry high fees, valuation problems, limited diversification, and limited liquidity. Brokers and investment advisers can rarely justify recommendations to purchase non-traded REITs.

Even if a client desires diversification into the real estate sector, client interests are far better served by investing in lower cost liquid funds managed by individuals with expertise and incentives to construct diversified portfolios with real estate investments. Many brokers and advisers who recommend non-traded REITs to retail investors usually do so because of the large selling commissions they earn.

Brokers have a duty to recommend investments that are in the best interests of their clients. If you suffered financial losses due to the unsuitable recommendations of Darryl Ferguson, the experienced attorneys at Meyer Wilson would like to speak with you. Contact us 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.

Did You Suffer Investment Losses While Working With Arkadios Capital Broker Kevin Rainwater?

Meyer Wilson is investigating allegations that Kevin Rainwater, an Atlanta-based broker and investment advisor, engaged in investment misconduct that caused his customers to suffer financially. Rainwater currently works for Arkadios Capital, where he has been registered since 2017.

Rainwater has been the subject of multiple allegations of misconduct by several clients. Four cases have been settled. The complaints alleged that he recommended unsuitable private placements, made misrepresentations, and engaged in unauthorized trading. One customer complaint is still pending, alleging that he recommended unsuitable investments, including Real Estate Investment Trusts (REITs). Non-traded REITs are highly risky, illiquid, and rarely suitable for any retail investor.

When recommending the purchase or sale of a security or investment, brokers have a duty not only to recommend investments that are in the best interests of their clients, but also to provide complete and balanced information regarding the investment to investors. If they fail to disclose information or provide inaccurate facts, they may be liable for misrepresentation.

Working with the right legal team makes all the difference. If you invested with Rainwater and lost money in unsuitable investments, the experienced securities and investment fraud lawyers at Meyer Wilson would like to speak with you. Please contact Meyer Wilson today for a no-cost consultation to discuss your legal options.

Meyer Wilson Representing Investors in Claims Involving Improper Reit Sales and Other Unsuitable Investments Sold by Cetera Advisors

The investment fraud lawyers at the law firm of Meyer Wilson are representing clients and investigating other claims on behalf of former customers of Cetera Investments Services, LLC, and its affiliates, who may have been improperly sold investments in real estate investment trusts (REITs) and other unsuitable investments in violation of securities industry rules and best practices.

Cetera is one of the nation’s largest networks of independent broker-dealers with about 8,000 financial advisors nationwide. Cetera has been the subject of numerous customer complaints relating to the improper sale of REITs and other alternative investments.

REITs are investment pools similar to mutual funds that focus on investing in income-producing real estate. These investments are often pitched to retirees who are looking for steady income, but they also can be fraught with significant risks. Due diligence on the part of the supervising brokerage firm is absolutely critical, as is avoiding overconcentration in particular REIT positions and across real estate sectors.

Various Cetera financial advisors are the subjects of currently pending customer complaints involving alleged improper sales of REITs and other investments. These include:

Hui Zhang: Three customer disputes were filed against Hui Zhang alleging he misrepresented in the recommendation of unsuitable, illiquid Real Estate Investment Trusts (REITs), including ARC Healthcare. One dispute was settled and two are currently pending. Hui Zhang currently works for Independent Financial Group, LLC. He previously worked for Cetera Investment Advisers LLC.

Shane Boehm: Two customer disputes alleging misrepresentation and unsuitable investments were filed against former Cetera Broker Shane Boehm. One customer dispute is still pending. The claimant alleges unsuitable investment recommendations, including Real Estate Investment Trusts (REITs), which resulted in a $1.5 million dollar loss.

Howard Hao-Chung Hsieh: Hseih is a broker and investment adviser in Irvine, California. He has been associated with Cetera Investment Services since 2013. Meyer Wilson is currently representing former customers of Hseih in FINRA arbitration claims involving sales of Hospitality Investors Trust. Hseih is the subject of at least one other pending customer complaint. Two prior customer complaints settled for a combined amount of approximately $900,000.

John Frank Donoso: Donoso is a former Cetera financial advisor in Boca Raton who is currently registered with Newbridge Securities. He is the subject of a currently pending customer complaint involving the sale of unsuitable investments.

Travis Jerome Hughes: Hughes is a broker and investment adviser with Cetera Advisors in El Paso, Texas. He has been associated with Cetera since 2016. He is the subject of at least one currently pending customer complaint. He has been the subject of at least nine prior customer complaints, four of which settled for combined amounts in excess of $600,000.

Nathan Paul McDonald: McDonald is a broker and investment adviser with Cetera Advisors in Auburn, Maine. He is the subject of a currently pending customer complaint involving the sale of REITS and private placements.

Ping Wu: Wu is a broker and investment adviser with Cetera Investment Services in Arcadia, California. She has been with the firm since 2013. Chu is the subject of two currently pending customer complaints alleging unsuitable investments.

In 2015, Cetera was fined by regulators for various supervisory failures relating to the sale of non-traded REITs.

If you are a current or former customer of Cetera, the investment fraud lawyers at the law firm of Meyer Wilson would like to speak with you. Contact us today for a no-charge consultation to discuss your legal options.

Did Ivan Cen Sell You Risky, Non-Traded Real Estate Securities?

Meyer Wilson is investigating claims on behalf of investors that Ivan Cen, a California-based financial advisor registered with Cetera Investment Services, sold his clients inappropriate investments.

Customers have filed three complaints against Cen alleging that he recommended them unsuitable investments, including shares in non-traded Real Estate Investment Trusts (REITs). One case settled. Two others remain pending.

Because non-traded REITs aren’t traded on a public exchange, investors can’t get their money back until the underlying real estate is sold. That makes them highly risky for investors. As a result, regulators have warned that REITs are unsuitable for the average retail investor, especially seniors.

If Cen recommended you unsuitable investments, contact us today for a free consultation to discuss your legal options. Meyer Wilson offers a completely free, no-pressure consultation so that you can learn about your rights to recovery after securities fraud, stockbroker misconduct, or investment fraud. All of our cases are handled on a contingency fee basis, so we don’t get paid for our work unless we’re successful in recovering money for you.

Did Your Investment Adviser From W.A. Smith Financial Group Sell You Risky, Non-Traded Real Estate Securities?

Meyer Wilson is investigating claims that W.A. Smith Financial Group, an investment advisory firm located in Cleveland, recommended that their clients invest in speculative, non-traded real estate investment trusts (REITs).

Because REITs do not trade on a public exchange, investors can’t get their money back until the underlying real estate is sold. That makes them highly risky for investors. As a result, regulators have warned that REITs are unsuitable for the average retail investor, especially seniors.

Investment advisers like W.A. Smith are fiduciaries to their clients and must act only in their clients’ best interests. If you suffered losses as a result of W.A. Smith’s account management, including any non-traded REITs, we are interested in hearing from you.

All our cases are handled on a contingency fee basis, so we don’t get paid for our work unless we’re successful in recovering lost funds. Contact ustoday for a free consultation to discuss your legal options.