National investment fraud lawyers KlaymanToskes is investigating brokerage firms’ recommendations to buy National Realty Investment Advisors’ (“NRIA”) Partners Portfolio Fund in light of the Company’s recent Chapter 11 bankruptcy filing and ongoing SEC investigation.
NRIA is a New-Jersey based real estate development firm with a fund specializing in luxury home sales and apartment rental divisions. NRIA’s principal offering is a real estate portfolio known as the NRIA Partners Portfolio Fund. Per bankruptcy filings, NRIA has approximately $540 million of preferred limited liability company interests that are held by 2,000 investors, and the Company has nearly $50 million in secured and unsecured debt.
Further, NRIA is embroiled in legal issues as the Company is currently under investigation by the United States Attorney’s Office for the District of New Jersey, the SEC, and three state securities regulators, and its former portfolio manager was charged for wire fraud in 2021 in connection with offering to sell an interest in the Partners Portfolio Fund.
Brokerage firms that recommend private placement alternative investments like NRIA Partners Portfolio Fund have a duty to make suitable investment recommendations. Unsuitable investment advice is an investment recommendation that is not consistent with an investor’s investment objectives, risk tolerance and investment time horizon. Each customer should have its own specific determination of suitability based on its particular circumstances. For these reasons the securities industry established the “know your customer” rule to govern investment recommendations.
Further, brokerage firms have a duty to conduct a reasonable investigation into the securities they recommend to their customers. A firm’s failure to make suitable recommendations and perform an adequate due diligence review results in liability, and is a basis for a FINRA arbitration claim.
Former and current investors of National Realty Investment Advisers’ Partners Portfolio Fund with losses in excess of $100,000, and those who have information relating to the handling of their account, are encouraged to contact Lawrence L. Klayman, Esq. at 1-888-997-9956.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered more than $230 million in FINRA arbitrations and over $350 million in other securities litigation matters for its clients. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.