Sonn|Erez recently filed a FINRA arbitration claim against H. Beck, Inc., on behalf of a businessman who invested $500,000 in the nontraded, illiquid Behringer Harvard REIT I, Inc. (“Behringer Harvard REIT”) and the Leaf Equipment Leasing Income Fund III, L.P. (“Leaf Fund”). The businessman specifically told his broker he was making investments with the proceeds from the sale of a business, and that the businessman must maintain access to this capital in order to begin a new business venture. Nevertheless, the broker recommended investing in these two risky, speculative investments, and the businessman has not only lost access to his capital, but also see his income and principal dissipated.
Behringer Harvard REIT is one of more than a half dozen large nontraded REITs that has seen its value dramatically decrease in the wake of the real estate collapse. During its three offerings in 2003, 2005, and 2006, shares were valued at $10 versus the recent value of $4.64 per share, as recently reported by Investment News.
The Leaf Fund raised $120 million through its offering period ending April 24, 2008. The Leaf Fund acquires portfolios of equipment to finance to end users throughout the United States and Puerto Rico, and was intended to generate regular cash distributions to its partners. As was the case with the Behringer Harvard REIT, however, the distributions of the Leaf Fund have been slashed to anemic levels, and investors are unable to access their principal, which also has been greatly reduced.
Investors who have lost money in the Behringer Harvard REIT I or the Leaf Equipment Leasing Income Fund III, L.P., can file FINRA arbitration claims against the brokerage firms who sold these high risk, unsuitable investments to them. Sonn|Erez specializes in representing investors (not brokerage firms) in securities arbitration and investor fraud cases throughout the country. Sonn|Erez has represented numerous investors in FINRA arbitration claims against the brokerage firms who sold illiquid, high-commissioned, non-traded investments and REITS, such as the Behringer Harvard Strategic Opportunity Fund I, Behringer Harvard REIT I, or Behringer Harvard Opportunity REIT I. Sonn|Erez continues to investigate other REITS and non-traded funds, such as Leaf Equipment Leasing Income Fund III, L.P., Wells REIT II, Wells Timberland REIT, Inland Western Real Estate Investment Trust, Inland American Real Estate Trust, Cole REIT II, Cole Credit Property Trust II, Hines Real Estate Trust, Grubb & Ellis Apartment REIT, CNL Lifestyle Properties, Dividend Capital REIT, and KBS REIT I, and Behringer Harvard investments on behalf of defrauded investors. To learn more, including whether you may have a claim for the Behringer Harvard REIT I, Leaf Equipment Leasing Income Fund III, L.P., or other investment losses, please call us at 866-372-8311 or complete our “contact form.”