On July 30, the Securities and Exchange Commission (SEC) has indicated an executive with The Parking REIT (MVP REIT) and his investment advisory company, Vestin Mortgage LLC, with fraud. The SEC alleged that the executive has committed numerous fraudulent activities to enrich himself and The Parking REIT— at the cost of two publicly-traded REITs — Vestin Realty Mortgage I and Vestin Realty Mortgage II —that he founded since 2012.
The complaint alleges that the executive has siphoned allegedly $29 million from Vestin Realty Mortgage I and Vestin Realty Mortgage II to The Parking REIT. The executive then supposedly instigated money-losing transactions where the same six properties were repeatedly “re-sold,” consequently benefitting himself and The Parking REIT.
Parking REIT (MVP REIT) investors are encouraged to contact our experienced investment fraud lawyers for a free consultation to discuss recovery options at 1-800-856-3352. There is a limited time to file claims.
Furthermore, the SEC believed that this executive broke his fiduciary responsibilities to Vestin REITs by making two separate transactions to force the companies to pay him around $10 million. In addition to the alleged self-dealing, it is reported that the executive was charged with misleading investors by making false and misleading statements in Vestin REITs’ public filings, which hid his actions. The Securities and Exchange Commission’s complaint purportedly demanded disgorgement, in addition to permanent injunctions, pre-judgment interest penalties, as well as industry bars against the executive.
The Parking REIT (MVP REIT II) – Investment Loss
A company with a total of 25 million shares is reported missing 50% of its invested capital. Since 2015 Vanguard’s Total Reit Index gained an approximate 40%. The parking REIT is a highly risky and speculative investment.
Brokers who neglected to conduct due diligence misrepresented the investment or improperly recommended the parking REIT to their clients can be held liable for damages suffered. Advisors that recommend their clients investing for their customers at the parking.
Others can be held responsible. If your broker recommended The Parking as the source of your financial losses. REIT or anything similar to it may be allowed to claim you for compensation.
Bombe Asset Management – An alternative asset management firm
Earlier this year Parking REIT entered into a binding agreement with a local division of Bombe Asset Management LLC, a Cincinnati-based alternative assets management firm. Over 135 million is planned to fund Bombe’s venture.
The agreements would cover Bombe’s investment of $35 million in cash and the donation of a variety of park equipment and other property worth more than $90 million. The parking REIT Board of Directors and a Special Committee of Independent Directors unanimously endorsed the agreement and the related transactions.
Bombe has said she plans to acquire 100% of the Company’s ordinary shares of its holdings upon successful completion in the following two-year transaction. It’s estimated that the sale will begin in upcoming quarters.
Recovery of Parking REIT Inc Investment Losses
The newly formed Parking REIT is a non-traded real estate investment trust (REIT) that primarily invests in parking lots and garages in the United States. The merger of MVP REIT II and MVP brought about the formation of this new company which was initially announced back in December 2017.
Haseklorn & Thibaut continues to receive frequent calls from investors concerning investment losses in the Parking REIT. The real estate investment trust (REIT) has had many problems in the past few years, including a class-action lawsuit, failure to file timely financial reports, and declining net asset value (NAV). Although the REIT’s initial offering price of $25 per share, its most recent NAV is only at $11.75 as of January 8, 2021.
The Parking REIT, like most other non-traded REITs, are complex and high-risk investments that are only suitable for sophisticated investors. The brokerage firm is responsible for ensuring that the investment is suitable to an investor, considering the investor’s age, income, net worth, experience, and investment objectives. Given the risk of devaluation, these REIT investments are probably only suitable for wealthier and more sophisticated investors who can assess risks properly and wither significant losses.