San Francisco, California (PRWEB) October 10, 2011
The Law Offices Of Jeffrey A. Feldman currently represents a California retiree who stands to lose a substantial portion of his total net worth because a broker at Crown Capital Securities, LP (“Crown Capital”) sold him a risky “tenancy-in-common” or TIC investment called NNN Woodside Corporate Park, which was misrepresented as meeting the Claimant’s needs for income and safety of principal, according to allegations in a statement of claim filed with FINRA (FINRA Case No. 11-03698). More information about the Law Offices of Jeffrey A. Feldman can be found at http://www.jeffreyfeldman.com.
According to allegations in the FINRA Arbitration claim, upon the recommendation of a broker at Crown Capital, the Claimant invested over $500,000 in a TIC interest called NNN Woodside Corporate Park, which consisted of a group of eight commercial office buildings. The property was initially sponsored and managed by NNN Properties, and later by Grubb & Ellis, per the claim filed with FINRA. As alleged in the FINRA Arbitration claim, Crown Capital and its agent misrepresented the TIC as an investment that would provide safety of principal, carefree professional management, steady monthly income, capital preservation and tax benefits. Crown Capital and its broker failed to disclose the risks, however, including the precarious financial condition of the project, and the fact that it was being sold to investors at an inflated price well above the fair market value, as alleged in the claim filed with FINRA. Ultimately, the returns promised to the Claimant were eliminated altogether, and according to the FINRA arbitration claim, foreclosure on the TIC appears to be imminent, placing the Claimant in danger of losing his entire investment.
According to Mr. Feldman, “historically speaking, large commercial properties have been purchased by pension funds, insurance companies, REITs and extremely wealthy individuals . . . by packaging these properties in the way that they did, the TICs were sold to people who could not afford to support the properties in times of distress, which can cause a complete loss on the property for all of the investors.”