Many investors are receiving notification this week that Desert Capital REIT has been forced into an involuntary Chapter 11 bankruptcy (or re-organization).  Realizing (some for the first time) that their investments in Desert Capital REIT may be a total loss, investors are beginning to review their legal options.

If you have questions about your legal options, The White Law Group may be able to help.

The White Law Group has been investigating potential securities fraud claims on behalf of investors in Desert Capital REIT dating back to November 2010.  Specifically, the firm has been looking at the broker-dealers that recommended the REIT to investors.  Brokerage firms have a fiduciary duty to research investments prior to recommending them for sale.  Given what is now known about Desert Capital, it appears that brokerage firms will be unable to demonstrate that they performed the necessary due diligence on Desert Capital REIT prior to recommending it for sale to the investing public.

FINRA recently 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, broker-dealers marketed these investments as safe and secure.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Desert Capital REIT, please contact The White Law Group 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://whitesecuritieslaw.com.