HOUSTON, March 15, 2022 /PRNewswire/ -- The law firms of Shepherd, Smith, Edwards & Kantas, LLP ("SSEK") and Menzer & Hill, P.A. ("M&H") are pleased to announce a significant award on behalf of their joint clients against First Allied Securities ("First Allied"). In the FINRA case, a retired couple from Arizona was awarded all its compensatory losses of $1.1 million. In addition, the Panel saw fit to award market adjusted damages of $818,000, expenses of $40,000 and over $660,000 in attorney's fees. The three-member arbitration panel was clearly troubled by First Allied's and its advisors' actions in rendering such a complete award.
The retirees contended that their portfolio was unduly concentrated in non-traded real estate investment trusts ("REITs"). These products are illiquid and very risky as non-traded REITs do not trade on any major exchange and, as a result, have almost no transparency. It was alleged that during the course of making their recommendations, the advisors misrepresented the safety of the investments. Some of the recommended products included Northstar Healthcare Income, American Realty Capital Hospitality Trust and American Realty Capital Global Trust II (n/k/a Global Net Lease GNL) and Griffin-American Healthcare REIT III. The Panel was also likely troubled by the fact that American Realty Capital was the parent company of First Allied, and, at the time the REITs were sold to the investors, American Realty Capital was under investigation for accounting fraud.
First Allied attempted to portray the retirees as sophisticated investors who wanted the risky REITs. However, through diligent discovery, evidence was developed that the financial advisor's book of business consisted mostly of non-traded REITs and other high commission products. The Panel clearly did not accept First Allied's defenses and may have been put off by its assertions.
SSEK and M&H work with investors and with other law firms throughout the nation to recover wrongful investment losses. Our firms represent clients who have experienced financial losses because their advisor unsuitably recommended non-traded REITs, alternative investments and other unsuitable products. We help investors throughout the US to recoup their losses caused by the carelessness or fraudulent actions of brokerage firms and their registered representatives.
Contact us below for a free, no obligation case consultation.
US Toll Free: (800) 259-9010
Kirk Smith
SOURCE Shepherd Smith Edwards & Kantas LLP
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