Castellan Real Estate Income Fund II LP: Lawsuit Investigation

Castellan Real Estate Income Fund II LP: Help for Investors

The White Law Group is investigating potential securities lawsuits involving broker dealers who may have improperly recommended Castellan Real Estate Income Fund II LP to investors.

REG D Private Placements: High Risk Investments

Castellan Real Estate Income Fund II LP reportedly filed a form D to raise capital from investors in 2020, according to SEC filings. The total offering amount sold to investors was purportedly $139,453,456.

 Private placement investments carry significant risks, including:

• Illiquidity: These investments are long-term and difficult to sell.
• High Fees & Commissions: Brokers and advisors may earn more than 9% in commissions and fees, which can impact investor returns.
• Potential for Loss of Principal: Market volatility or poor performance can lead to substantial losses.
• Limited Investor Control: Management decisions are made by a trustee, restricting investor influence.
• Tax Implications: If regulatory requirements are not met, potential tax benefits could be at risk.

While some private placement investments may make periodic distributions, some may not make any at all. Another problem is the high fees and commissions that brokers and financial advisors may receive for the sale of a private placement investment– sometimes close to 10% of the client’s total investment.

Castellan Real Estate Income Fund II LP: Suitable for you?

Under the “Regulation Best Interest” standard, broker-dealers are obligated to perform due diligence when evaluating any investment.  If your financial advisor fails to perform due diligence on an investment before recommending it to you, they could be held liable for investment losses.

If your advisor unsuitably recommended a private placement investment and you lost money, the securities attorneys at The White Law Group may be able to help you. You may be able to recover losses by filing a FINRA Arbitration lawsuit against the brokerage firm that sold you the investment.

Lawsuit Options: FINRA Arbitration vs. Class Action

Investors considering legal action may wonder whether a class action lawsuit or an individual FINRA arbitration claim is the better option. Typically:

• FINRA Arbitration is often more suitable for investors with losses exceeding $100,000.
• Class Action Lawsuits are usually pursued when numerous investors have small claims that are impractical to litigate individually.

FINRA Lawsuits

If you are concerned about investment losses in Castellan Real Estate Income Fund II LP, you may have recovery options. If you want to learn more about your legal options, please contact the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.