CHICAGO--(BUSINESS WIRE)--UNITE HERE issued the following letter to seniors seeking financial advice about real estate investments:
Dear Consumer:
Inland Real Estate Income Trust is far short of its fundraising target and, as of Q2, Inland had not raised any money from non-Inland investors for Residential Properties Trust. Both trusts are structured similarly to how problematic Inland American was initially. Inland American’s problems have affected ~184,000 investors.
Inland American - called out as a nightmare for some property investors - was dubbed a “zombie REIT” by The Wall Street Journal. Its name was subsequently changed to InvenTrust.
A new report details Inland’s non-traded REIT track record over the last three years, including:
- Massive related party fees charged to investors;
- sued by stockholders;
- significant portion of offering proceeds (i.e. new investors’ capital) used to pay distributions; and
- liquidation challenges for its largest product.
LPL Financial, the largest broker dealer in the country, has sold Inland. In 2013, The New York Times reported that “LPL had faced an unusual number of penalties from state and federal regulators for allowing its brokers to sell complicated products to unsophisticated investors.” The string of regulatory enforcement actions continued, resulting in tens of millions in fines, restitution, and settlements. Regulators alleged that LPL had:
- Overcharged senior investors and misrepresented qualifications when marketing to senior investors in MA;
- failed to supervise its brokers;
- made misrepresentations to FINRA investigators; and
- sold investors unsuitable non-traded REITs.
Don’t let an Inland investment haunt your retirement. Read our latest report on Inland Residential Properties Trust at www.InlandInvestorAlert.org and learn more about LPL at www.LPLexposed.org.
