FINRA Arbitration filed against Synovus Securities to recover Wells REIT II investment losses

CHICAGO - Nov. 1, 2013 - PRLog -- The claim, filed against Synovus Securities, seeks recovery of investment losses of approximately $200,000.00.

The claim filed by The White Law Group was filed on behalf of two Georgia investors and alleges claims for fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim specifically alleges that the investors were unsuitably invested in Wells REIT II and that Synovus Securities only selected the investment because of the commissions generated as a result of the recommendation.  The claim further alleges that Synovus Securities failed to perform the proper due diligence on the investments prior to offering them for sale to their clients.

Non-traded REITs are real estate investment trust investments.  They are typically sold by financial advisors by touting the investments income potential and completely glossing over the costs and risks of the investments.  However, one of the defining characteristics of non-traded REITs are that they do not trade on a securities exchange, and because of this they are illiquid for long periods of time. Also, the front-end fees can be as much as 15%, much higher than virtually any other product.

Broker-dealers have a fiduciary duty to perform adequate due diligence on any investment prior to recommending them for sale to their clients and to ensure that the investments it recommends are appropriate for the client in light of the clients age, investment experience, net worth, and investment objectives.

In October 2013, Wells REIT II (now known as Columbia Property Trust) had an initial public offering (IPO).  Unfortunately for its investors, the REIT had already engineered a four-to-one reverse stock split which would have required the IPO to debut at $29.32 per share in order to maintain the already diminished $7.33 per share value investors had before the split.  The IPO debuted at around $22 per share.
For more information on the claim filed by The White Law Group, please contact the firm's Chicago office at 312-238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.