Carter Multifamily Growth & Income Fund II Lawsuit Investigation

Carter Multifamily Growth & Income Fund II: – Investor Complaints & Regulatory Risks

The White Law Group is investigating potential FINRA arbitration claims involving brokerage firms and financial advisors who may have unsuitably recommended investments in Carter Multifamily Growth & Income Fund II, a private real estate investment offering sponsored by Carter Funds.

What is Carter Multifamily Growth & Income Fund II?

According to a Form D filing with the SEC, Carter Multifamily Growth & Income Fund II, LLC is a Florida-based limited liability company formed in 2019. The offering was conducted under Rule 506(b) of Regulation D, and the company disclosed the following:

• Total Offering Amount: $200,000,000

• Minimum Investment: $50,000

• Number of Investors: Not yet disclosed (first sale not reported)

• Sales Commissions Paid (estimated): $19,000,000

• States Solicited: All 50 states

Risks of Investing in Carter Multifamily Growth & Income Fund II

Private placement offerings like this one are often illiquid, speculative investments that are not suitable for most retail investors. These types of investments are typically sold through independent broker-dealers, often motivated by high sales commissions, as was the case here with an estimated $19 million in fees.

Additional concerns include:

• Lack of liquidity: These investments are not traded on public exchanges and may be extremely difficult to sell.

• Lack of transparency: Issuers are not required to disclose audited financials or regular reporting, leaving investors in the dark.

• High risk: Many private placements fail to make periodic distributions or produce expected returns.

FINRA rules require brokerage firms to perform adequate due diligence and ensure that investment recommendations are suitable based on an investor’s age, investment experience, financial goals, and risk tolerance. Failure to do so can result in legal claims for recovery.

Filing a Lawsuit for Losses in Carter Multifamily Growth & Income Fund II

In October 2023, they reportedly announced that it was suspending distributions to investors and that its advisor would defer 100% of its asset management fees. The company cited economic pressure due to rising interest rates and insurance costs.

If your financial advisor misrepresented the risks, failed to perform due diligence, or over-concentrated your portfolio in high-risk private placements like Carter Multifamily Growth & Income Fund II, you may be eligible to file a FINRA arbitration claim to recover damages.

The White Law Group has represented thousands of investors nationwide in claims involving Reg D private placements.

Free Consultation with a Securities Attorney

For a free consultation, call 888-637-5510 or visit www.whitesecuritieslaw.com to speak with a securities fraud lawyer today.

For more information about private placement risks, see our guide on Regulation D Private Placement Fraud Attorneys.

Frequently Asked Questions

1. What is the status of Carter Multifamily Growth & Income Fund II?

The fund suspended investor distributions in late 2023 and announced fee deferrals by the advisor. The SEC Form D shows the full offering amount is $200 million, but the first sale was not yet reported at the time of filing.

2. Can I recover losses from Carter Multifamily Growth & Income Fund II?

If your broker failed to disclose the risks or recommended the investment without determining whether it was suitable for you, you may be able to recover damages through FINRA arbitration.

3. What are the warning signs of an unsuitable private placement recommendation?

Red flags include high upfront commissions, lack of liquidity, little or no financial reporting, and aggressive sales tactics. If your advisor emphasized potential returns without explaining the risks, that may violate FINRA regulations.

About The White Law Group

The White Law Group, LLC is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We have over 30 years of experience representing investors in claims against financial professionals and brokerage firms.

For more details about ongoing investigations or to discuss your potential claim, please visit: www.whitesecuritieslaw.com Or call 888-637-5510