The White Law Group is announcing a continued investigation into the sale of Cornerstone Real Estate Funds (REITs).
The firm is investigating whether brokerage firms and financial professionals misrepresented the safety of Cornerstone Real Estate Fund investments. The following is a list of the Cornerstone Funds currently or formerly offered to the investing public:
Cornerstone Core Properties REIT, Inc. (Cornerstone Core Property REIT)
Cornerstone Growth & Income REIT, Inc.
Cornerstone Private Equity Fund, Inc.
CIP Leveraged Fund Advisors, LLC (CLFA)
Cornerstone Industrial Properties, LLC (CIP)
Cornerstone Realty Fund, LLC
Cornerstone Healthcare Plus REIT, Inc.
Cornerstone Healthcare Real Estate Fund, Inc.
The firm is carefully monitoring and investigating how these investment products have been sold.
FINRA has announced that it is paying close attention to the sale of REITs and, in particular, the ways in which broker/dealers marketed and sold the products to investors. In many cases, and notwithstanding the risk of REIT investments, broker-dealers marketed these investments as safe and secure.
REITs typically pay a high commission – up to as much as 15% (which in some cases may explain the stockbroker’s motivation in recommending the REIT investment to the investor).
It appears that some of the foregoing Cornerstone real estate investments may have been sold through the California based Pacific Cornerstone Capital, Inc. (the brokerage arm of Cornerstone Real Estate Funds). Additionally, according to the Cornerstone Real Estate Funds own website “Cornerstone’s funds are available through thousands of FINRA (formally known as NASD) registered financial advisors throughout the country.”
To determine whether you may be able to recover investment losses incurred as a result of your purchase of a Cornerstone Real Estate Fund or REIT, please contact The White Law Group’s Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.
My husband and I invested $30,000.00 in Cornerstone Real Estate Funds. My husband died of Alzheimers in April 2008, therefore letter and e-mails should be directed to me, Betty Brand. We invested our money 2006. We were assured that it was a wonderful investment because it was investing its money in retirement homes, etc for seniors in the state of Florida where so many seniors have gone to retire.
Each year I receive beautiful pictures of units they have purchased along with a request that they are still taking new investors if we would like to invest additional funds.
So far we have seen no return on our investment. Letters have said that the investment cannot be sold, and that so far there has been no profit to return to the investors. In the letter I read today, I understand that we are not even considered stock holders.
Please advise me more about this company, the investigation that is taking place, and for what reason? To your knowledge have any of these company officials have had any problems or any charges against them with land or property investments or property development?
In otherwords, I really need to know what kind of problems I need to be on the lookout for, as this money is part of my life savings. I am counting on receiving a return on my investment to help me in retirement. I am 78 years old and a retired teacher. Please help me.
[…] Real Estate Funds: Cornerstone REIT and CIP Leveraged Fund Securities Fraud Investigation Continued Securities Investigation into the Sale of Cornerstone Real Estate Funds (REITs) Recovery of Cornerstone Core Property REIT Losses Filed under: Securities Fraud Comment (0) […]
Please contact us concerning investments in Cornerstone. Our broker/dealer sold us the Cornerstone REIT as a safe and well-paying investment and we were told, “You’ll have your principal in 5 years plus a whole lot more.” We began receiving some money – interest income the end of last year (paid per quarter) but then received a letter from Cornerstone in May/June 2011 stating no more payments would be issued. We need help to know what to do. They have our money and the person we invested with we feel misrepresented the product. We wanted conservative. This was not. Thank you. Tim & Linda Langley, Fresno, CA