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.