UCM US RMBS Opportunity REIT Shareholders may have Claims
The White Law Group is investigating potential securities claims involving FINRA registered broker dealers who may have unsuitably recommended high risk alternative investments such as UCM US RMBS Opportunity REIT to investors.
The company reportedly filed a Form D to raise capital from investors in 2013 for the offering UCM US RMBS Opportunity REIT, Inc., according to filings with the SEC. The total offering amount sold to investors was purportedly $5,507,383.
The White Law Group is investigating potential securities claims involving broker-dealers’ improper recommendation that investors purchase high-risk alternative investments. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.
Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.
Another problem often associated with alternative investment recommendations is the high sales commissions brokers typically earn – as high as 15%. For this particular investment the sales commissions and fees were estimated at more than 9%.
Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.
In addition to the high risks, non-traded REITs, like UCM US RMBS Opportunity REIT often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.
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. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.
If you suffered losses investing in UCM US RMBS Opportunity REIT and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.
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