Investors who placed money in the Bluerock Private Real Estate Fund
(BPRE) through a broker-dealer may have the right to pursue recovery
through FINRA arbitration. Haselkorn & Thibaut, P.A., operating as
Investment Fraud Lawyers, represents investors who allege they suffered
losses due to unsuitable recommendations, inadequate disclosures, or
other misconduct tied to BPRE and related Bluerock products. This
article explains how the arbitration process works and what Bluerock
Private Real Estate Fund losses may mean for your portfolio.
What is FINRA arbitration?
Table of Contents
The Financial Industry Regulatory Authority, or FINRA, is a
self-regulatory organization that oversees broker-dealers and their
registered representatives in the United States. When a dispute arises
between an investor and a brokerage firm, FINRA provides a specialized
arbitration forum to resolve the conflict outside of court.
Unlike traditional litigation, FINRA arbitration is decided by a
panel of one or three arbitrators rather than a judge or jury. The
process is generally faster and less formal than a courtroom trial. Most
cases conclude within 12 to 18 months from the date the claim is filed.
Investors do not need to travel to FINRA’s headquarters; hearings take
place at regional offices around the country.
Why Bluerock BPRE
investors may have claims
The Bluerock Private Real Estate Fund was a non-traded real estate
investment vehicle marketed to retail investors through independent
broker-dealers. Investors have alleged that financial advisors
recommended BPRE without adequately disclosing key risks, including
illiquidity, high fees, and the fund’s reliance on borrowed capital.
The Securities and Exchange Commission, or SEC, has scrutinized
non-traded REIT and private real estate fund sponsors for disclosure
failures and suitability violations. In BPRE’s case, investors have
raised concerns about whether broker-dealers performed sufficient due
diligence before recommending the product, particularly given its
complex structure and the potential for significant NAV declines.
The related Bluerock Total Income+ Real Estate Fund has also drawn
attention from investors who allege similar suitability and disclosure
problems. Both funds share common sponsors and distribution channels,
and claims involving either product may follow comparable arbitration
paths.
How
the FINRA arbitration process works for BPRE investors
Filing a FINRA arbitration claim involves several distinct stages.
Understanding each step helps investors decide whether to move forward
and what to expect along the way.
| Step | Description | Typical timeframe |
|---|---|---|
| File statement of claim | Investor submits a written claim describing losses, alleged misconduct, and requested damages |
Day 1 |
| Broker-dealer response | The firm files an answer and any counterclaims | Within 45 days |
| Arbitrator selection | Parties select arbitrators from FINRA’s roster | 30–60 days |
| Discovery | Both sides exchange documents, trade records, and written testimony |
3–6 months |
| Hearings | Arbitrators hear live testimony and review evidence | 1–3 days |
| Award | Panel issues a written decision, which is binding and enforceable in court |
Within 30 days of final hearing |
Common
allegations in BPRE arbitration claims
Investors pursuing Bluerock BPRE FINRA arbitration have raised
several categories of allegations against the broker-dealers that sold
these products:
- Unsuitability — Advisors recommended BPRE to
investors whose risk tolerance, liquidity needs, or investment
objectives made the product inappropriate for their portfolios. - Failure to disclose risks — Investors allege they
were not told about the fund’s illiquidity, the possibility of
distribution reductions, or the impact of borrowed capital on
returns. - Breaches of fiduciary duty — Some claims assert
that advisors placed their own interests — including commissions and
trailing fees — ahead of their clients’ financial well-being. - Negligent due diligence — Broker-dealers have been
accused of failing to conduct adequate due diligence on BPRE’s
structure, fees, and underlying real estate holdings before offering the
fund to retail customers.
These are allegations, not settled findings. Each claim depends on
its specific facts, including the investor’s profile, the advisor’s
recommendations, and the disclosures provided at the time of
purchase.
What to gather before
filing a claim
Before starting a Bluerock BPRE FINRA arbitration, investors should
collect the following documents:
- Account statements showing BPRE purchases and current
valuations - The original subscription agreement and private placement
memorandum - Any correspondence with the recommending advisor or firm
- Tax documents (K-1s) received from the fund
- Records of distributions received and any capital account
statements
Having these materials organized before the initial consultation
accelerates the evaluation process and helps our attorneys assess the
strength of potential claims.
How our firm can help
We handle FINRA arbitration claims on a contingency-fee basis, which
means investors pay no attorney fees unless we recover compensation. Our
attorneys include former Wall Street defense counsel who understand how
broker-dealers prepare for arbitration and where their defenses are most
vulnerable.
If you experienced losses in the Bluerock Private Real Estate Fund or
the Bluerock Total Income+ Real Estate Fund, call 1-888-885-7162 or
visit InvestmentFraudLawyers.com for a confidential consultation. You
can also learn more about
Bluerock
Private Real Estate Fund losses and the recovery options that may be
available to you.
Disclaimer: Past results do not guarantee future outcomes. This
page provides general information and is not legal advice. No
attorney-client relationship is formed by reading this content. There is
no guaranteed recovery in any securities matter. Consult a qualified
attorney regarding your specific situation.
