Written by 10:40 am Blog, Securities Fraud Articles

Recover Losses in KBS Real Estate Trust

KBS Real Estate Trust

KBS Real Estate Trust Investment Losses

Have you suffered investment losses in KBS Real Estate Trust?  If so, the securities attorneys of The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

The trouble with private placements, like KBS Real Estate Trust, is that they lack liquidity and are inherently risky. Compared to traditional investments, such as stocks, bonds and mutual funds, private placements are more complex and less regulated, making them better suited for sophisticated and institutional investors.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience.  Firms that fail to do so, may be held responsible for any losses.

Unfortunately, the high sales commissions associated with private placements often provides some broker dealers with enough incentive to overlook suitability requirements (broker dealers earn extremely high sales commission for selling private placements, sometimes as high as 15%).

Another problem with these investments involves liquidity.  Investors looking to sell a private placement investment often have difficulty finding a buyer, and can suffer significant losses on the sale.   According to LPsales.com, a secondary market for private placements, shares of KBS Real Estate Trust sold for $2.37 per unit in July 2014.

Recovery of Investment Losses

To determine whether you may be able to recover investment losses incurred as a result of your purchase of KBS Real Estate Trust, please contact The White Law Group at (888) 637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm, visit www.WhiteSecuritiesLaw.com.

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