Direct Invest Part of $8 Million Real Estate Investment Dispute

Cleveland stockbroker fraud lawyerSeveral claimants brought forth multiple causes of action, among which were fraud, negligence, and elder abuse, arising in connection with their real estate investments in Direct Invest, LLC, according to a Financial Industry Regulatory Authority (FINRA) Arbitration Statement of Claim filed in January 2011 and amended afterward. The investments also reportedly include Heron Cove LLC and Braintree Park, LLC.

Couple Alleges that Property Investments Relied on “Tricks”

The couple, Heinrich and Araceli Hardt, allegedly bought two tenant-in-common (TIC) exchanges, one in 2007, and another in 2008, from former LPL broker David Glenn. Investors have also reportedly filed suits against the sponsor of the real estate deals, Direct Invest LLC. By the end of 2009, the Hardts reportedly stopped receiving payments on both deals.

Documents Make Multiple Allegations Against Direct Invest, Allegedly

Documents for the private-placement offerings by the sponsor, Direct Invest, according to the lawsuit, reportedly “contain multiple false and misleading statements regarding the strength and experience of the manager and property manager, the stability of the cash flows, the potential for appreciation, the superiority of the location, the nature and strength of current projected conditions for the greater Boston office market, the strength of the leases and their corresponding projections, the building fundamentals, the use of proceeds, and the purchase price in relation to the replacement cost.”

Investment Fraud Lawyers Investigating

The Peiffer Rosca securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

phil korosec (1252 Posts)

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.