Michael Risko, a broker and investment advisor associated with SAIC Institutions, Inc. (CRD 35371) in New York, is currently facing a pending customer dispute, according to his FINRA BrokerCheck report. The complaint, filed on January 13, 2024, alleges that a paperwork and processing error negated the redemption of a non-traded REIT due to death for Q4-2022, and that share redemptions were suspended for Q1-2023 in advance of the REIT going public.
The complaint is related to a real estate security product, and the damage amount requested by the customer has not been disclosed. Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating Michael Risko and SAIC Institutions, Inc. in connection with this complaint.
Investment fraud and bad advice from financial advisors can have devastating consequences for investors. According to a Forbes article, some common signs of investment fraud include promises of high returns with little or no risk, pressure to make quick decisions, and a lack of transparency regarding the investment.
Understanding Non-Traded REITs and FINRA Rules
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Non-traded REITs (Real Estate Investment Trusts) are illiquid investments that are not traded on public exchanges. These investments often come with high fees, limited liquidity, and complex structures that can be difficult for investors to understand. FINRA Rule 2310 requires broker-dealers to conduct due diligence on these products and to ensure that they are suitable for each investor based on their financial situation, investment objectives, and risk tolerance.
In this case, the alleged paperwork and processing error that negated the redemption of shares due to the investor’s death raises concerns about the firm’s handling of the situation. Additionally, the suspension of share redemptions in advance of the REIT going public may have further complicated matters for the investor’s beneficiaries.
The Impact on Investors
This case highlights the importance of working with a financial advisor who thoroughly understands complex investment products like non-traded REITs and can effectively communicate the risks and benefits to their clients. When errors occur, such as the alleged paperwork and processing mistake in this complaint, it can have significant financial consequences for investors and their families.
Investors who have suffered losses due to broker misconduct or negligence may be entitled to recover their losses through FINRA arbitration. It is crucial for investors to be aware of their rights and to seek the guidance of experienced investment fraud attorneys when faced with such situations.
Red Flags and Recovering Losses
Some red flags that may indicate financial advisor malpractice include:
- Failure to disclose material information about an investment product
- Recommending unsuitable investments
- Mishandling paperwork or account transactions
- Lack of transparency regarding fees and commissions
If you suspect that you have been a victim of investment fraud or broker negligence, it is essential to consult with a qualified investment fraud attorney. Haselkorn & Thibaut, with over 50 years of combined experience and a 98% success rate, has helped numerous investors recover their losses through FINRA arbitration.
The firm operates on a contingency basis, meaning they do not charge any fees unless they successfully recover your losses. For a free consultation, investors can call Haselkorn & Thibaut‘s toll-free number at 1-888-628-5590.
As the investigation into Michael Risko and SAIC Institutions, Inc. unfolds, it serves as a reminder for investors to remain vigilant, ask questions, and seek professional advice when dealing with complex investment products. By staying informed and working with experienced professionals, investors can better protect their financial well-being and navigate the challenges that may arise in the world of investing.
