Retired Wisconsin Couple Files FINRA Claim Against Great Point Capital Over Non-Traded REIT Losses
The White Law Group has filed a FINRA arbitration claim on behalf of a retired couple from Wisconsin against Great Point Capital (CRD#: 114203). The claim alleges the couple’s broker recommended unsuitable investments in Moody National REIT II and Rodin Income Trust, Class A. The couple is seeking damages of $100,000 to $500,000. If you invested through Great Point Capital and suffered losses, you may be able to speak with our FINRA arbitration attorneys about your options.
What the Claim Alleges
The claim alleges the broker recommended a concentrated position in illiquid non-traded REITs and private placements without adequately considering the couple’s age, retirement income needs, risk tolerance, or need for liquidity. The claimants allege that Great Point Capital, as the FINRA member firm responsible for supervising the broker’s recommendations, failed to catch and stop a pattern of unsuitable sales to retired clients.
Investments Named in the Claim
The claim identifies the following investments as having been recommended to the claimants:
Non-traded REITs and private placements like these are illiquid, difficult to value, and generally carry higher risk and higher fees than publicly traded alternatives, making them a poor fit for retirees who depend on their portfolio for income and need access to their money.
Managing Partner Statement
“Retired couples need investments they can count on for income and access to when they need it, not illiquid private placements they can be locked into for years,” said Dax White, managing partner of The White Law Group. “We believe there may be other Great Point Capital clients who were sold similar non-traded REITs and don’t yet realize they have recourse.”
Can Great Point Capital Be Held Responsible?
Broker-dealers are required to supervise the recommendations made by their registered representatives. When a firm fails to catch unsuitable or overconcentrated recommendations, especially for retired clients who depend on their portfolios for income, it can be held liable for the resulting losses, even if it did not directly make the recommendation itself.
Recovering Losses from Non-Traded REIT and Private Placement Investments
Investors who were sold unsuitable non-traded REITs or private placements may be able to recover losses through FINRA arbitration. The White Law Group is investigating potential claims on behalf of other investors who worked with this broker and were recommended similar investments.
Contact The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago and Seattle. If you invested through Great Point Capital and believe you were sold unsuitable non-traded REITs or private placements, call us today at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
1. How do I file a claim to recover money I invested through Great Point Capital?
Most brokerage account agreements typically include a pre-dispute arbitration clause, which many investors don’t know exists until they need it. That means claims like this are generally filed and resolved through FINRA arbitration rather than in court, and arbitration can still result in a monetary recovery for investors.
2. What makes a non-traded REIT or private placement recommendation “unsuitable”?
A recommendation is unsuitable when it doesn’t match an investor’s risk tolerance, liquidity needs, or investment goals. Non-traded REITs and private placements are illiquid and hard to value, making them generally inappropriate for retirees or others who need regular access to their money.
3. Can Great Point Capital be held responsible even if it didn’t directly approve the investment?
Yes. Broker-dealers have a duty to supervise their registered representatives’ recommendations. If a firm’s supervisory system failed to catch a pattern of unsuitable sales, the firm may be liable for the resulting losses.
