Erez Law is currently investigating brokers across the country who are accused of recommending the unsuitable RAD Diversified REIT, a non-traded real estate investment trust (REIT).
What is RAD Diversified REIT?
Diversified REIT invests in a portfolio of properties that includes residential properties, income-producing farms, and multi-family properties. The risky investment is allegedly unsuitable for many investors, including the elderly those who consider themselves of a conservative investment portfolio.
Other reports indicate that investors were encouraged to invest before the price increased; however, they were later notified that the money they invested was never utilized for investment purposes in the RAD Diversified REIT due to being “oversubscribed.” Regardless, investors were told by their brokers that they should expect high returns for their investments, which may not be true or a realistic expectation.
Public records indicate that clients have been unable to withdraw funds due to a temporary asset freeze; distributions may also be suspended. Additionally, funds of these types tend to charge high fees to the clients that hold them.
It is alleged that brokers recommended this unsuitable investment to clients without disclosing the risks. Other brokers overconcentrated these investments in the accounts of their clients without paying attention to the red flags that these investments may not be safe and secure for many inventors.
Who Invested in RAD Diversified REIT?
It is reported that both accredited and non-accredited investors, including those unsophisticated investors without a great deal of investment experience. Additionally, wealthy and non-affluent inventors invested in RAD Diversified REIT.
Many investors, regardless of age, net worth, or investment experience, have invested in RAD Diversified REIT and suffered investment losses.
RAD Diversified REIT Investment Loss Options
RAD Diversified REIT is a non-traded REIT that is registered with the United States Securities and Exchange Commission (SEC). Although it is a registered investment, investors looking to redeem funds may face some challenges.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, brokerage firms across the country may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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