Florida Retiree Files FINRA Claim Against Arete Wealth Management Over Private Placement and Non-Traded REIT Losses
The White Law Group has filed a FINRA arbitration claim on behalf of a Florida retiree against Arete Wealth Management. The claim alleges the retiree’s broker recommended a series of unsuitable private placements and non-traded REITs, including BlueRock Industrial REIT, Priority Income Fund, and Mill Green Investment Opportunity Fund 8. The retiree is seeking damages of $100,000 to $500,000. If you invested through Arete Wealth Management and suffered losses, you may be able to speak with our FINRA arbitration attorneys about your options.
What the Claim Alleges
The claim alleges the broker recommended a concentrated mix of illiquid private placements and non-traded REITs without adequately considering the retiree’s age, income needs, risk tolerance, or liquidity needs. The claimant alleges that Arete Wealth Management, as the FINRA member firm responsible for supervising the broker’s recommendations, failed to catch and stop a pattern of unsuitable sales to a retired investor.
Investments Named in the Claim
The claim identifies the following investments as having been recommended to the claimant:
- BlueRock Industrial REIT
- Priority Income Fund
- Mill Green Investment Opportunity Fund 8
Non-traded REITs and private placements like these are illiquid, difficult to value, and generally carry higher risk and higher fees than publicly traded alternatives, making them a poor fit for many retirees relying on their portfolio for income.
Managing Partner Statement
“Retirees depend on their investments for income, not for locking money away in illiquid private placements they can’t easily sell if their circumstances change,” said Dax White, managing partner of The White Law Group. “We believe there may be other Arete Wealth Management clients who were sold similar private placements and don’t yet realize they have recourse.”
Can Arete Wealth Management Be Held Responsible?
Broker-dealers are required to supervise the recommendations made by their registered representatives. When a firm fails to catch unsuitable or overconcentrated recommendations, especially for retired clients who depend on their portfolios for income, it can be held liable for the resulting losses, even if it did not directly make the recommendation itself.
Recovering Losses from Private Placement and Non-Traded REIT Investments
Investors who were sold unsuitable private placements or non-traded REITs may be able to recover losses through FINRA arbitration. The White Law Group is investigating potential claims on behalf of other investors who worked with this broker and were recommended similar investments.
Contact The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago and Seattle. If you invested through Arete Wealth Management and believe you were sold unsuitable private placements or non-traded REITs, call us today at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
1. How do I file a claim to recover money I invested through Arete Wealth Management?
Most brokerage account agreements typically include a pre-dispute arbitration clause, which many investors don’t know exists until they need it. That means claims like this are generally filed and resolved through FINRA arbitration rather than in court, and arbitration can still result in a monetary recovery for investors.
2. What makes a private placement or non-traded REIT recommendation “unsuitable”?
A recommendation is unsuitable when it doesn’t match an investor’s risk tolerance, liquidity needs, or investment goals. Private placements and non-traded REITs are illiquid and hard to value, making them generally inappropriate for retirees or others who need regular access to their money.
3. Can Arete Wealth Management be held responsible even if it didn’t directly approve the investment?
Yes. Broker-dealers have a duty to supervise their registered representatives’ recommendations. If a firm’s supervisory system failed to catch a pattern of unsuitable sales, the firm may be liable for the resulting losses.
