Securities Arbitration Lawyers BlogThe Parking REIT, f/k/a the MVP REIT and MVP REIT II, Under Investigation After It Suspends Dividend Payments
Silver Law Group is investigating the Parking REIT after the public, non-traded REIT suspended cash distributions and stock dividends to its shareholders. If you’ve invested in the Parking REIT or its affiliates, we may be able to help recover some of your money.
The Parking REIT Ceases Distributions and Dividends
In March 2018, the Parking REIT announced that the board of directors unanimously authorized a suspension of the Parking REIT’s cash distributions and stock dividends to “focus on preserving capital” and “seek to enhance the value of the [Parking REIT] … through potential future acquisitions.”
The suspension of distributions and dividends come as the Parking REIT conducts an internal investigation into possible wrongdoing by its CEO Michael V. Shustek.
The Parking REIT was formerly two (2) separate non-traded REITs: MVP REIT and MVP REIT II. MVP REIT II changed its name to the Parking REIT and, in December 2017, the two (2) REITs merged.
What Brokerage Firms Sold the Parking REIT?
The Parking REIT is run by Shustek and companies he owns and/or is affiliated with, including MVP Capital Partners, LLC and MVP Realty Advisors. Further, the Parking REIT has been sold by MVP American Securities, a formerly FINRA-registered brokerage firm.
While MVP American Securities has sold Parking REIT securities, according to other Form D and Form D amendments filed with the SEC, the following firms have been listed as receiving sales compensation for selling Parking REIT securities:
- Accelerated Capital Group;
- Centaurus Financial, Inc.;
- Coastal Equities, Inc.;
- Crown Capital Securities, L.P.;
- Forest Securities, Inc.;
- Great Point Capital LLC;
- NI Advisors;
- Sandlapper Securities, LLC;
- Whitehall-Parker Securities, Inc.
There are numerous alleged conflicts of interest concerning Shustek’s ownership and/or management of the Parking REIT and other affiliated entities. Shustek has, at times, used his role with these companies to effect transactions that have benefitted himself at the expense of investors, according to a Securities Litigation & Consulting Group report.
What is a Non-traded REIT
The Parking REIT is a public, non-traded REIT. A non-traded REIT invests in real estate like a publicly-traded REIT and is subject to the same IRS and SEC disclosure requirements, but there are some key differences:
- Non-traded REITs do not list on a national securities exchange;
- Non-traded REITs have limited resale value and are relatively illiquid;
- Non-traded REITs have significant front-end fees that can be as much as 15% of the price per share; and
- Distributions may come from the principal paid for the non-traded REIT.
Contact Our Firm if You’ve Invested in the Parking REIT
If you have invested in the MVP REIT, the MVP REIT II, and/or the Parking REIT, you may have a claim against the broker or brokerage firm that sold you the non-traded REIT(s). Contact our firm today to see how we can try to recover your losses. If we don’t recover money for you, you owe us nothing.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.