Telos Capital Securities Investigation

Telos Capital Securities Investigation: Investor Lawsuits

The White Law Group is investigating potential securities claims involving private placements sponsored by Telos Capital, a real estate investment firm that purportedly raises money from retail investors through high-risk private offerings.

One such offering, TCF12 Columbus Industrial LLC, was reportedly structured to invest in a one-million-square-foot industrial warehouse facility in Columbus, Ohio. According to a Form D filing, the investment promised 11%+ in-place annual cash flow and the potential for upside through future re-tenanting.

What is Telos Capital?

According to its website, Telos Capital targets “discounted, value-add, or opportunistic private real estate investments across all asset class sectors.” The principals of Telos often co-invest alongside their investors and are usually among the largest investors in their projects.

However, many Telos Capital offerings are unregistered private placements, which may lack transparency and carry a high degree of risk, especially for conservative or retired investors. These types of investments are often sold by financial advisors in exchange for high commissions, typically ranging from 7–10%, plus additional due diligence fees of 1–3%.

Risks of Private Placement Investments

Private placements like TCF12 Columbus Industrial LLC are often illiquid, speculative, and lack the regulatory oversight of traditional investments such as stocks or bonds. Investors may not fully understand the risks associated with these products, especially if they were misled by financial advisors seeking high commissions.

If a brokerage firm fails to perform adequate due diligence before recommending these investments—or sells them to investors for whom they are unsuitable—they may be liable for resulting losses.

Broker Due Diligence Obligations

FINRA-registered broker-dealers are required to:

• Conduct thorough due diligence on any investment product they recommend

• Understand the risks associated with each offering

• Make investment recommendations that are suitable for the investor’s age, financial goals, and risk tolerance

Failure to follow these guidelines may be considered a breach of fiduciary duty or negligence and can result in financial liability in a FINRA arbitration claim.

List of Telos Capital Offerings Under Investigation

The White Law Group is reviewing the following Telos Capital private placements for potential claims:

• TCF12 Columbus Industrial LLC

• Telos Capital Fund 1

• TCF2 Stella Mare RV Park Galveston

• TCF3 Apartments at the Venue

• TCF4 Stadium View Suites

• TCF5 Monrovia

• TCF6 Constitution Road Studios

• TCF7 Carolinas Multifamily

• TCF8 733 East Huntington Dr

• TCF9 Milford

• TCF10 Real Estate Fund

• TCF11 Kirkwood Student Housing

• TCF13 Watermark Multifamily

If you invested in any of the above offerings and suffered losses, you may be eligible to recover damages.

How to Recover Investment Losses

If you were sold a Telos Capital private placement by a broker or financial advisor and have suffered financial losses, you may be able to pursue a claim through FINRA arbitration. This process allows investors to seek compensation without needing to go to court and can be a faster and more efficient path to recovery.

The White Law Group has recovered millions of dollars for investors through FINRA arbitration and is currently investigating Telos Capital lawsuits and claims on behalf of investors nationwide.

FAQs about Telos Capital Investments

1. What is Telos Capital and are their investments risky?
Telos Capital is a private real estate investment firm that sponsors high-risk, illiquid private placements targeting opportunistic properties. These investments often carry significant risk and are not suitable for all investors.

2. Can I sue Telos Capital if I lost money?
While Telos Capital may not be directly liable, the broker-dealer or financial advisor who sold you the investment could be. Claims are typically pursued through FINRA arbitration against the brokerage firm, not the sponsor.

3. How much time do I have to file a claim?
There are strict statutes of limitations for securities claims. If you suspect investment fraud or unsuitability, you should speak with a securities attorney as soon as possible to preserve your rights.

Class Action vs. FINRA Arbitration: What’s the Difference?

Investors often ask whether they should join a class action lawsuit or file an individual FINRA arbitration claim. While class actions can be appropriate in some cases, they often result in minimal recovery for individual investors. In contrast, a FINRA arbitration claim is tailored to your specific situation and may result in a more substantial and timely recovery.

Free Consultation with a Securities Fraud Attorney

If you are concerned about your investment in TCF12 Columbus Industrial LLC or any other Telos Capital offering, please contact The White Law Group at 888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We help investors nationwide recover losses caused by broker negligence and unsuitable investment recommendations.