Recovery of Investment Losses in Cornerstone Apartment Venture III
Have you suffered investment losses in Cornerstone Apartment Venture III? If so, the attorneys at The White Law Group may be able to assist you in recovering your losses through FINRA Arbitration.
Cornerstone Real Estate Advisers LLC, with subsidiary and affiliate offices in the U.S., UK, Europe, and Asia, is one of the largest global real estate-focused investment managers with $50.6 billion in global assets under management as of March 31, 2016, according to their website. Cornerstone is a wholly owned subsidiary of Babson Capital Management, one of the world’s leading global asset managers.
Cornerstone Real Estate Advisers LLC filed a Form D for Cornerstone Apartment Venture III to raise capital in 2007, according to SEC filings.
The Trouble with Reg D Private Placement Investments
The trouble with Reg D private placement investments, such as Cornerstone Apartment Venture III, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks and bonds.
Broker dealers that sell alternative investments are required to perform adequate due diligence on all investment recommendations to ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
However, another unfortunate by product of Reg D private placements is that the high sales commission brokers earn for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of products.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Cornerstone Apartment Venture III or another private placement investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.
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 Seattle, Washington. For more information on the firm, visit www.WhiteSecuritiesLaw.com.
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