The Claimant, who is retired and living in Illinois, maintained an investment relationship with the Respondent and their Financial Advisor at Taylor Capital Management, Michael Pellegrino. Pellegrino is not named in this lawsuit.
The lawsuit alleges that TAYLOR CAPITAL MANAGEMENT and Michael Pellegrino solicited the Claimant to invest in a non-traded REIT call Northstar Healthcare (Northstar). Allegedly, the Claimant was advised to purchase and hold the REIT and was allegedly told that the REIT would pay out consistent income plus return of principal within a few years. However, the lawsuit alleges, TAYLOR CAPITAL MANAGEMENT failed to adequately advise the Claimant regarding the risk of this recommendation, and the high commissions TAYLOR CAPITAL MANAGEMENT and Pellegrino received for selling the REIT. Northstar is currently priced at approximately $3.51 in the secondary market and no longer pays income.
Non-traded REITs, suffer from illiquidity, unreasonable commissions, poor diversification, and numerous conflicts of interest. Many of the dividend payments made by non-traded REITs do not actually represent distribution of earnings from the REIT, but instead either represent debt or a return of principal.
The lawsuit alleges that the Claimant has suffered significant damages of at least $125,000 during a time when the financial markets have enjoyed record returns.
The allegations against the Respondent stated in the lawsuit are: breach of contract, negligent supervision, breach of fiduciary duty, violations of FINRA rules, and negligence.
According to FINRA’s BrokerCheck, which is available to the public on FINRA’s website, MICHAEL AUGUST PELLEGRINO (MICHAEL PELLEGRINO) CRD#: 5900843, has 11 Disclosures on his CRD report. All 11 Disclosures are Customer Disputes, dating back to 2015. There are 7 Customer Disputes pending, dating from 2018 and 2019. Several of these disputes involve allegations of, “the sale of speculative non-traded real estate investment trusts ("Non-Traded REITs").”
Michael Pellegrino has been in the securities industry for 6 years and was with the two firms listed below:
0/02/2012 - 04/17/2018 TAYLOR CAPITAL MANAGEMENT INC - OAKBROOK TERRACE, IL
10/04/2011 - 10/15/2012 CENTER STREET SECURITIES INC - OAKBROOK TERRACE, IL
If you’ve suffered financial losses due to the recommendations or actions of TAYLOR CAPITAL MANAGEMENT INC of OAKBROOK TERRACE, IL and/or their former financial advisor, Michael Pellegrino, contact an experienced securities lawyer at Soreide Law Group at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis.
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