Securities Arbitration Lawyer Blog
A Crown Capital Securities L.P. customer has recently filed a complaint with FINRA Dispute Resolution Services alleging that broker Jeffrey Michael Warren recommended unsuitable investments in non-traded real estate investment trusts (REITs) and non-traded business development companies (BDCs). The complaint includes additional causes of action, including inadequate due diligence and breach of fiduciary duty.
Mr. Warren has been registered with Crown Capital Securities, L.P. in San Ramon, California, since February 2013.
If you have suffered financial losses investing with Jeffrey Michael Warren or Crown Capital Securities, L.P., or suspect that Mr. Warren did not have your best interest in mind when recommending investments, including REITs and BDCs, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.
Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Crown Capital Securities, L.P.
Financial Advisor Jeffrey Michael Warren (CRD#: 5616071)
Jeffrey Michael Warren has been in the securities industry for 11 years and first registered as a broker in 2008. He began his career at Questar Capital Corporation, where he worked from 2008 until 2011. He then worked for one year at Money Concepts Capital Corp. before joining Crown Capital Securities, L.P. in February 2013.
Real Estate Investment Trusts (REITs)
A real estate investment trust (REIT) is an investment vehicle that allows investors to invest in income-producing real estate. REITs may own a wide range of real estate assets such as apartments, offices, commercial buildings, warehouses, etc. REITs let investors pool their money with other investors to invest in real estate without owning real estate assets individually. Instead, an investor owns shares in a REIT, and in doing so, they add the individual real estate assets owned by the REIT to the investor’s portfolio. Among other things, REITs are attractive to income-seeking investors for their regular dividend payments and higher-than-average yields. REITs may also provide an investor with diversification in their portfolio. But even with these apparent benefits, investors should understand the inherent risks of REITs and how to manage them. To read more about REITs, click here.
Business Development Companies (BDCs)
Business development companies (BDCs) are organized to invest in two types of businesses: 1) small- and medium-sized companies in their initial development stages and 2) distressed companies looking to balance their finances. BDCs are similar to closed-end investment funds in that their shares are registered with the U.S. Securities and Exchange Commission (SEC). Registration provides some investor protections such as disclosure about the BDC’s investments and certain restrictions on the use of leverage. BDCs may be publicly-traded, non-traded, or structured as private BDCs.
Typically, a BDC must invest at least 70% of its assets in U.S. non-financial sector operating companies that are not listed (i.e., private companies) or public companies with a market cap of less than $250 million.
Though BDCs may be attractive to investors due to their high dividend yields, they are often considered high-risk investments with high sales commissions and unfavorable fee structures. In particular, FINRA has previously cautioned investors about the risks of non-traded or unlisted BDCs, which may be illiquid and offer investors limited opportunities to exit (i.e., periodic share repurchases at high discounts). They are considered high-risk, speculative investments for elderly customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you have lost money with financial advisor Jeffrey Michael Warren or Crown Capital Securities, L.P., contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.