rown Capital Broker Michael McKay Allegedly Sold Unsuitable REIT
Soreide Law Group is reviewing possible investor claims against securities brokers including Michael McKay (CRD#: 2190491, Marshall, Missouri), a Crown Capital Securities registered representative. It appears that at least 1 of McKay’s clients at Crown Capital Securities L.P. disputed his real estate investment trust (“REIT”) sales. Here’s what we know about the dispute involving McKay:
Crown Capital Securities Investor Disputes Michael McKay’s REIT Trade
Evidently, a client of Crown Capital Securities L.P. brought a formal dispute about Michael McKay to the firm’s attention on September 17, 2018. It appears that McKay recommended and seemingly sold the client a non-traded real estate investment trust. Supposedly, this investment was unsuitable as it failed to provide the client much needed liquidity. Allegedly, the client was only able to redeem 25% of the principal investment through a share redemption program. The remainder of the investment is seemingly illiquid. For this reason, the client demanded at least $15,000 in this pending matter.
REIT Suitability Concerns
Non-traded REITs are typically unsuitable for investors requiring liquidity or low-risk investments. Namely, investors holding non-traded REITs may find it difficult, if not impossible, to sell shares. This is especially a problem in volatile market conditions.
Also, some brokers or advisors fail to inform investors about critical drawbacks of non-traded REITs in order to induce transactions. Often times, this happens because of the compensation which the broker or advisor stands to receive from the transaction. FINRA rules naturally prohibit brokers like Michael McKay from providing misleading information to clients.
Moreover, financial advisors can only recommend investments which match their clients’ needs, risk tolerance and investment circumstances. Investors who purchased misrepresented or unsuitable REITs from their broker or financial advisor may be able to recover their losses.
Did You Suffer Losses Because Of Michael McKay?
If you experienced losses by investing through Michael McKay, contact Soreide Law Group at (888) 760-6552. Speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represent clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.