Corporate & Securities Law

Inland American REITs: Fraud Recovery For Investors

By Mark Maddox

Investments in Inland American REITs have backfired for investors throughout the country. In many instances, these products - including the Inland American Real Estate Trust and Inland Western Retail Real Estate Trust - were pitched by broker/dealers as a low-risk, conservative investment. In reality, however, investors were putting their money into non-traded REITs, and the qualities that define these REITs are anything but conservative.

Non-traded REITs (or unlisted REITs) are not listed on a stock exchange. Redemptions in them are limited at best. Perhaps the biggest downside to non-traded REITs is their fees, which in some cases can be upwards of 15%.

Many investors were woefully unaware of the high fees associated with their non-traded REITs - until it was too late. And for some broker/dealers, that?s just what they had in mind when they pitched these products to their conservative clients.

Maddox Hargett & Caruso is investigating a number of non-traded REITs, including the Inland American Real Estate Trust and Inland Western Retail Real Estate Trust. If you suffered investment losses in either of these REITs or another non-traded REIT, contact us to tell your story. A member of our securities fraud team will work with you to determine if some or all of your losses can be recovered.

Full post as published by Representing Investors on January 29, 2010 (boomark / email).