National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments issued by Wells Real Estate Investment, LLC to their customers. Our law firm believes many investors may have been misled regarding the risks and liquidity issues associated with Wells’ “Assets-to-Income Program,” following allegations that the company operated a $56 million ponzi scheme.
The Securities and Exchange Commission (“SEC”) has filed an emergency action and obtained an asset freeze against Wells Real Estate Investment, LLC following allegations that the firm and its representatives raised at least $56 million from approximately 660 investors, through promises of high returns through Wells’ “Assets-to-Income Program”.
The SEC’s complaint disclosed that investors were solicited to invest in Wells’ “Assets-to-Income Program,” which offered promissory notes purportedly collateralized and secured by real estate. The “Assets-to-Income Program” allegedly promised to pay investors interest ranging from 12% annually, to 99% after three years. The SEC’s findings state that undisclosed commissions were paid to sales agents to promote these investments.
If your financial advisor recommended Wells Real Estate investments 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 Wells Real Estate investment offerings, 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.
Wells Real Estate Investment, LLC presented itself as a significant player in the real estate market with a portfolio reportedly valued at $450 million, primarily concentrated in South Florida. The firm attracted investors through its “Assets-to-Income Program,” promising high returns on investments supposedly backed by real estate assets.
The firm reportedly raised $56 million from approximately 660 investors, however, according to the SEC’s findings, only about $11 million of the $56 million raised was actually invested in real estate. Additionally, the properties acquired were reportedly heavily mortgaged and did not generate sufficient revenue to cover the promised returns. Moreover, significant funds were diverted by the firm’s CEO, Janalie C. Bingham, and her husband, Jean Joseph, into speculative and risky trading activities, resulting in substantial losses.
According to the SEC, a substantial amount of the capital raised by Wells Real Estate Investment, LLC was not used as promised for real estate investments but was instead diverted into speculative trading activities by the CEO and her spouse. This resulted in approximately $28 million being invested in highly volatile financial markets, leading to significant financial losses.
Additionally, the properties that were part of the investment scheme were heavily mortgaged, which resulted in insufficient income generation to meet the high returns promised to investors, further increasing the risk of default on these investments.
The brokers and financial advisors responsible for selling Wells Real Estate investments may be held responsible for any financial losses sustained by investors. Brokerage firms and financial advisors must consider their client’s risk tolerance prior to making recommendations, and cannot overconcentrate their customers’ accounts in any one investment product or market sector.
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’ investigation of Wells Real Estate Investment, LLC:
If you suffered losses in Wells Real Estate Investment, LLC, or any other investments, contact securities attorney Steven D. Toskes 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.
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 ponzi schemes is the high sales commissions brokers typically earn for selling these investments. According to the SEC’s complaint, the financial advisors who sold Wells Real Estate Investment were paid undisclosed commissions. 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.
To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you suffered losses in Wells Real Estate Investment, LLC or any other investments, contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
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 Wells Real Estate Investment, LLC. 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 unsuitable Wells Real Estate Investment, LLC, or any other unsuitable 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.