National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in JER Investors Trust, Inc. REIT to their customers, when the investment was illiquid for a share price of $15. Recently, JER Investors Trust filed for Chapter 11 bankruptcy protection in connection with its loss of over $1 billion in mortgage-backed securities and debt exceeding $100 million, compared to assets valued at less than $50 million. Our firm believes many investors may have been misled regarding the risks and liquidity issues associated with JER’s REIT offering.
If your financial advisor recommended an unsuitable Real Estate Investment Trust (“REIT”) or Business Development Company (“BDC”) based on your investment profile, or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
If you suffered losses in JER Investors Trust REIT, or any other alternative investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
JER Investors Trust REIT is a mortgage real estate investment trust (“mREIT”) that primarily invests in mortgage-backed securities and debt instruments linked to commercial real estate. The REIT is partially owned by private equity firm C-III Capital Partners, and has recently filed for Chapter 11 bankruptcy protection under the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware (case no. 23-12109).
JER’s bankruptcy aligns with a current trend of real estate companies encountering financial difficulties, notably amid rising interest rates and the repercussions of the COVID-19 pandemic. With over $100 million in debts and less than $50 million in assets, JER is seeking Chapter 11 protection in order to restructure its finances. JER Investors Trust’s largest creditor is The Bank of New York Mellon Trust, to which the REIT owes approximately $93.9 million.
Many investors are not aware of the risks and liquidity problems associated with non-traded REITs. REITs are considerably more complex than traditional stocks and mutual funds, and involve a high degree of risk due to being illiquid. Mortgage REITs or “mREITs” such as JER Investors Trust pose higher risks to investors than other types of REITs due to their sensitivity to interest rate fluctuations and their vulnerability to changes in the housing market.
Brokerage firms and financial professionals that recommended investments in REITs such as JER Investors Trust may be liable for any investment losses incurred by their customers. Brokerage firms must diversify their clients’ portfolios and cannot overconcentrate their customers’ accounts in any one investment product or market sector. Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products.
A problem often associated with alternative investment recommendations, such as Non-Traded REITs and BDCs, is the high sales commissions brokers typically earn for selling these investments, which can be as high as 15%. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
KlaymanToskes is a leading national securities fraud law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations.
The article linked below contains important information relating to KlaymanToskes’ investigations of JER Investors Trust REIT:
If you suffered losses in JER Investors Trust REIT, or any other alternative investments at a full-service brokerage firm, contact securities attorney Lawrence L. Klayman to discuss your recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.
The firm has helped recover over $600 million for investors (exclusive of attorneys fees and costs), and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in JER Investors Trust REIT. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased JER Investors Trust REIT, or any other unsuitable alternative investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.