Massachusetts Securities Division recently filed a complaint against Cabot Investment Properties (CIP), and its principals Carlton P. Cabot and Timothy J. Kroll, for allegedly defrauding investors.
The complaint accuses the company of misappropriating more than $9 million dollars from 8 Cabot tenant-in-common investments (TICs). More than half the funds came from Massachusetts investors, most of whom were elderly and seeking income for retirement.
The complaint alleges that, from August 2003 up to the present, the company committed fraud through wire transfers, material misrepresentations and omissions to investors. They are also accused of misleading risk disclosures regarding investors liability.
According to the PPMs, the TICs were to produce rent for twenty years on a monthly basis. However, instead of going to investors, the complaint says “Cabot and Kroll commingled rents, reserves and operating cash from the various TIC investments into CIPs several holding accounts.” From these accounts, Cabot and Kroll, wired millions to their personal bank accounts.
Unfortunately many investors believed their liability was limited to the extent of their principal investment. That was not the case. The complaint alleges that several liabilities were buried within the offering documents in the form of personal and joint liabilities.
To make matters worse, Cabot and Kroll, allegedly “placed themselves as agents on behalf of investors” so that all notices retarding the TICs were forwarded to them. As a result, investors were purportedly unaware as to events of default on their TIC investments. Many investors became indebted as a result.
The White Law Group continues to investigate potential claims on behalf of investors to recover losses in Cabot Tics. To read more about TIC investments and Cabot Investment Properties visit our blog, here.
If you own interests in Cabot Investment Properties and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States. Our offices are located in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit the firm’s website at www.WhiteSecuritiesLaw.com.Tags: Cabot Investment Properties alleged fraud, Cabot Investment Properties alleged wrongdoing, Cabot Investment Properties complaint, Cabot Investment Properties information, Cabot Investment Properties investigation, Cabot Investment Properties investment losses, Cabot Investment Properties lawsuit, Cabot Investment Properties liability, Cabot Investment Properties performance, Cabot Investment Properties recovery, Cabot Investment Properties reimbursement, Cabot Investment Properties returns, Cabot Investment Properties TIC default, Cabot Investment Properties TIC losses, Cabot Investment Properties TIC value Last modified: July 17, 2015