The Securities Arbitration Law Firm Of Klayman & Toskes Files $1.4 Million Claim Against Multi-Financial Securities Corp. As It Continues To Investigate Claims On Behalf Of Inland Western REIT Investors
The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”), www.nasd-law.com, announced today that it filed a claim against Multi-Financial Securities Corp. to recover damages sustained in speculative Real Estate Investment Trusts (“REITs”) and Limited Partnerships (“LPs”), including Inland Western REIT n/k/a Retail Properties of America (NYSE: RPAI) and investments in oil and gas. The securities arbitration claim was filed with the Financial Industry Regulatory Authority (“FINRA”), and seeks damages of $1.4 million.
According to the claim, the Claimants opened accounts with Multi-Financial and its financial advisor based out of the advisor’s own remote office in Atlanta, Georgia. Both Claimants advised the advisor that they wanted to protect their principal while generating income. In fact, both Claimants had a large percentage of their savings invested in cash and fixed income. Knowing these investment objectives, the advisor recommended that the Claimants invest a substantial amount of money in illiquid and speculative REITs and LPs. At the recommendation of the Multi-Financial advisor, the following investments were made: PDC 2005-B Oil & Gas, Wells REIT II, Inland Western REIT, Cronos Containers Partners I, LP, Reef Global Energy VII Oil & Gas, Reef Global Energy VI Oil & Gas, Hines REIT, Mewbourne 2006-A Oil & Gas, Behringer Harvard Strategic Opportunity Fund II, REIT, Crowne Hattiesburg Bluffton Holdings, CIT Group Holdings Medium Term Notes, Mewbourne 2008-A, Oil & Gas, Atlas Resources 2008, Oil & Gas, and LEAF Commercial Finance Fund LLC, LP.
While the advisor represented the REITs and LPs as safe, income producing investments, the reality is that they were illiquid investments that incorporated significant risk. The Claimants were unaware of the true risk and both had specifically advised the advisor that they wanted their principal protected. The advisor also masked the risk of the investments by providing Claimants with spreadsheets that made their investments appear to be stable and producing income with tax advantages. As a result of the wrongful conduct of Multi-Financial and its advisor, the Claimants sustained substantial damages.
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