Sandra Fexer Accused of Recommending Unsuitable Investments in Desert Capital REIT to Elderly Customers
Sandra Fexer, formerly of CM Securities, LLC, made multiple unsuitable recommendations to her customers for the purchase of a non-traded real estate investment trust (“REIT”), according to a complaint filed by the Financial Industry Regulatory Authority’s (“FINRA”) Department of Enforcement.
Fexer made multiple unsuitable recommendations to three customers for the purchase of a non-traded REIT – Desert Capital REIT, an illiquid and speculative security, according to the complaint. The Desert Capital REIT prospectuses described the REIT as a speculative investment with a high degree of risk and indicated that the REIT’s shares should only be purchased if the investor could afford a complete loss.
Fexer recommended Desert Capital REIT to some of her elderly and retired customers who had limited incomes and moderate risk tolerance level, according to the complaint. However, without reasonable grounds, Fexer recommended and concentrated their portfolios in Desert Capital REIT, according to the Department of Enforcement.
Desert Capital REIT eventually suspended sales of new shares and reduced the dividend to existing shareholders. Its shares reportedly have no current value.
The Peiffer Wolf 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 in connection with their financial professionals’ recommendations of unsuitable investments. 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 Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.