Parking REIT Losses?

Soreide Law Group Reviewing Possible Investor Claims Relating To Parking REIT

Soreide Law Group is investigating possible investor claims against financial advisors and securities brokers relating to their recommendations and sales of investments in Parking REIT. Notably, SEC filed a lawsuit against an executive of Parking REIT, Michael Shustek, who owns Vestin Mortgage LLC. Coupled with the REIT’s significant loss of value per share as of June 2021, investors are naturally concerned about the viability of their holdings and whether their financial advisors or securities brokers made unsuitable recommendations or misrepresented Parking REIT. Here’s more about Parking REIT, SEC’s lawsuit against the executive, and what you can do if you sustained losses.

What Is The Parking REIT?

A real estate investment trust (“REIT”) is a company that combines investor capital for purposes of acquiring or financing real estate investments. REITs are supposed to pay shareholders 90 percent of their income each year. Parking REIT is a publicly registered, non-traded REIT which invests in parking facilities in Canada and the United States. Specifically, the REIT focuses mainly on parking garages, parking lots and other structures. Evidently, advisors recommended this REIT to investors seeking capital preservation, periodic payments (income) and growth. Particularly, it is a high-risk, speculative product.
Evidently, Parking REIT came about through a merger of MVP REIT I and MVP REIT II. Notably, at the primary offering, the issuer sold shares at $25 apiece. However, the board of the REIT revealed a $11.75 per share value as of June 2021. This is a sharp drop from the $25 offering price.

Executive Charged In SEC Complaint

Evidently, Michael Shustek, who is the CEO of real estate investment trusts and owner of Vestin Mortgage LLC, faces accusations from SEC in a Complaint. Namely, SEC contends that Shustek carried out schemes to enrich himself at the expense of the people who invested in the companies that he ran. It appears that REITs are the focus of SEC’s Complaint: Vestin Realty Mortgage 1 (VRTA) and Vestin Realty Mortgage II (VRTB), managed by Vestin Mortgage LLC.
Notably, SEC alleged that Shustek pulled $29,000,000 from VRTA and VRTB and placed assets into Parking REIT. It appears that Shustek potentially caused VRTA and VRTB to enter into unprofitable transactions. Supposedly, this involved transactions for Parking REIT’s and Shustek’s benefit. Also, Shustek allegedly breached a fiduciary duty to VRTA and VRTB in getting those companies to pay him nearly $10,000,000 in securities transactions. Supposedly, investors of VRTA and VRTB faced harm as public securities filings concealed Shustek’s self-dealing.
Because of this, SEC seeks sanctions against Shustek which includes enjoining him from violating securities laws, and prohibiting him from working in various capacities in the securities industry.

Financial Advisors, Brokers Recommending Unsuitable Parking REIT Investments

Sometimes, securities brokers and financial advisors tout real estate investment trusts as investments that can generate extra special income. But these investments can be speculative and carry high risks. The risks can be greater for those investors who purchase non-traded REITs. Specifically, non-traded REITS are generally not easily sold or redeemed. Issuers can suspend distributions, leaving investors with no payments. It is possible for certain financial advisors to have made unsuitable or misrepresented recommendations regarding Parking REIT, causing investors’ losses.

Suffered Losses?

Have you experienced losses by investing in Parking REIT because of your financial advisor or securities broker? If so, contact Soreide Law Group at (888) 760-6552 and speak with an experienced securities lawyer concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered compensation for many US investors who have been wronged by securities brokers and financial advisors.