FINRA Arbitration filed against Questar Capital to recover Cornerstone Core Properties Losses

May 15, 2012 - PRLog -- The White Law Group announces that it has filed a Financial Industry Regulatory Authority (FINRA) arbitration statement of claim against Questar Capital.  The claim seeks to recover losses in excess of $90,000.

The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of an investor living in Floida alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that Questar Capital unsuitably invested the client in Cornerstone Core Properties REIT.

According to a letter sent out by Cornerstone Core Properties to its investors, “the estimated per-share value has been adversely affected by the recent global economic downturn, negatively impacting [the firm’s] small business tenant base, which has resulted in approximately $43 million of previously announced impairment charges recorded in the second and third quarters of 2011.”

It has also been reported that Cornerstone Core Properties REIT suffered a sharp decline in tenant occupancy (tenant occupancy of the REIT’s retail properties was 69% at the end of last year, compared with 92% at the end of 2008). Additionally, the sponsor of the REIT had some regulatory issues that precluded the sponsor from raising the necessary capital to properly fund the REIT.  

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.  It is alleged that Questar Capital failed to perform the necessary due diligence on this investment prior to recommending them to this particular investor.

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional.  It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.

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.