Meyer Wilson is investigating potential claims on behalf of investors in The Parking REIT.
The Parking REIT has suspended distributions and is currently facing a class action lawsuit from shareholders. After the SEC indicted CEO Michael Shustek in July 2021 for allegedly defrauding investors, The Parking REIT announced the sale of its company in a transaction that includes 1.5 million shares of stock to be sold at $11.75 per share – over 50% less than its original $25 price.
Did you lose money investing in The Parking REIT, MVP REIT, or MVP REIT II? Call Meyer Wilson to discuss your options for recovering investment losses.
The Parking REIT
The Parking REIT was a non-traded real estate investment trust formed by the merger of MVP REIT and MVP REIT II. It was a speculative, complex, and high-risk investment product that, like any non-traded REIT, was unsuitable for most retail investors.
Investors who bought into The Parking REIT may have suffered losses due to illiquidity, lack of transparency in valuation, and substantial conflicts of interest.
The Parking REIT also paid large commissions and fees to brokers and broker dealers who sold the REIT to their clients, which incentivized many to push the investment even when it was inappropriate for their risk tolerance and general investment goals.
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The Parking REIT, which suspended cash distributions and stock dividends in 2018, has been the subject of legal action and complaints. This includes:
- A class action lawsuit filed in 2019 by shareholders who allege that company directors breached their fiduciary duties and that proxy statements filed with the SEC for approval of the MVP REIT / MVP REIT II merger contained false and misleading statements.
- SEC charges filed in July 2021 that accuse The Parking REIT CEO Michael Shustek of defrauding investors. The SEC complaint alleges that Shustek fraudulently enriched himself and The Parking REIT by draining $29 million from two publicly traded REITS he previously founded – Vestin Realty Mortgage I (VRTA) and Vestin Realty Mortgage II (VRTB). In addition to self-dealing, the complaint alleges that Shustek violated his fiduciary duties to VRTA and VRTB and made false and misleading statements in their public filings.
In August 2021, The Parking REIT announced that it sold a majority stake in the company to an affiliate of Bombe Asset Management LLC, an alternative asset management company based in Cincinnati.
As part of the transaction, the Bombe affiliate purchased nearly 1.55 million shares of The Parking REIT common stock at $11.75 per share.
This means investors who bought into The Parking REIT at the original $25 share price and who were unable to sell due to the illiquid nature of their investment may have lost over 50% of their principal.
Meyer Wilson Can Help
If you suffered losses investing in The Parking REIT, MVP REIT, or MVP REIT II, you may have options to recover your losses through FINRA arbitration.
As noted by the SEC and FINRA, non-traded REITs are not appropriate investments for most retail investors, and brokers and advisors who sell them may be accountable for losses arising from misrepresentations, unsuitable recommendations, or other forms of investment fraud or misconduct.
Recovering Losses Caused by Investment Misconduct.