Vernon Litigation Files Claim vs First Allied Securities
Vernon Litigation has filed a FINRA arbitration claim versus First Allied Securities regarding its unsuitable recommendation of ARC NYC REIT (NYC) to a disabled veteran and his wife in Fort Myers, Florida. The investors were sold a $25,000 investment in the REIT before it became publicly traded. First Allied Securities recommended that the retirees reinvest the dividends to purchase new shares in the investment. Unbeknownst to the retirees, NYC was a speculative investment with substantial risks to investment principal.
In August 2020 NYC had a reverse split, which reduced investors’ shares by 60%. Subsequently, the REIT became publicly traded and has plummeted from $25 per share down to $10 per share. Investors have seen principal declines of approximately 80%. NYC is a leveraged investment with a concentrated focus on commercial real estate investments in New York City. As a result, investors should expect the investment to remain under pressure for the foreseeable future.
Retirees that have suffered losses investing in NYC should contact our firm. We have been successfully representing aggrieved investors for more than 25 years. Our firm has also been one of the leading advocates against REIT misconduct by Wall Street firms. If you or one of your family members or friends have suffered losses in NYC REIT due to the unsuitable investment advice by your financial advisor, please contact one of our securities lawyers to discuss your rights.