Investor Lawyers Blog
Investors who suffered significant losses as a result of the unsuitable recommendation of Behringer Harvard Multifamily REIT I from a full-service brokerage firm can contact a securities fraud attorney to determine if they wish to pursue legal claims through Financial Industry Regulatory Authority (FINRA) arbitration.
An announcement from Behringer Harvard Holdings LLC stated that affiliates of Behringer Harvard and a board of directors special committee of Behringer Harvard Multifamily REIT I had entered into contractual arrangements, initiating the process of making the REIT self-managed. However, the management team for the REIT will remain basically unchanged. Five of the executives will become employees of the REIT instead of employees of Behringer Harvard. Furthermore, Mark T. Alfieri will replace Robert S. Aisner, who will remain an employee of Behringer Harvard, as the REIT’s CEO.
Typically, non-traded REITs carry a high commission, sometimes as high as 15 percent, which motivates brokers to make unsuitable recommendations to their clients. Non-traded REITs such as the Behringer Harvard Multifamily REIT I are attractive to investors because they carry a relatively high dividend or interest. However, in some instances brokers have sold the REITs without disclosing the risks of principal loss and/or the fact that the investor’s funds may be tied up for several years due to the limited market for resale of non-traded REIT shares.
If you suffered significant losses because of an unsuitable recommendation of Behringer Harvard Multifamily REIT I, or another non-traded REIT, you may be able to recover your losses through FINRA arbitration. To find out more about your legal rights and options, contact an investment fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 for a no-cost, confidential consultation.