Erez Law Files Claim for REIT Losses Against Axa Advisors, LLC

Posted on Monday, October 21st, 2019 at 2:11 pm    

AXA Advisors

Erez Law recently filed a FINRA arbitration against Axa Advisors, LLC for unsuitable real estate investment trust (REIT) losses amongst other things.

The Erez Law client alleges that Gloria Barbier (CRD #5719709) and Kevin Dooley (CRD #2513153) mismanaged her investments. Barbier has been registered with Axa Advisors, LLC in Miami, Florida since 2009. Dooley has been registered with Axa Advisors, LLC in Miami, Florida since 1995.

The Erez Law client, who was an inexperienced investor, alleges the following in the newly filed FINRA claim:

The client was retired and was seeking a consistent stream of income to meet her living expenses. Barbier and Dooley recommended that the client invest in three non-traded alternative investments, including Northstar Healthcare Income, Northstar Real Estate Income II, and in FS Investment Corp. III.

According to the claim, Barbier and Dooley misrepresented to the client the features and characteristics of the three non-traded alternative investments: Northstar Healthcare Income, Northstar Real Estate Income II, and in FS Investment Corp. III. The REITs were unsuitable, high risk and illiquid alternative investments.

Northstar Healthcare Income is a non-traded REIT that invests in equity, debt and securities investments in healthcare real estate. Its shares were sold at $10 a share. In December 2017, Northstar Healthcare Income reduced its distribution payments by more than 50%. In December 18, 2018, its shares were devalued to $7.10 a share, however the shares are illiquid and trade a steep discount in the secondary market in the $2-$3 range. In early 2019, Northstar Healthcare Income announced the suspension of all distribution payments to investors.

Northstar Real Estate Income II is a non-traded REIT that invests in real estate debt. In January 2017, Northstar Real Estate Income II merged into Colony Northstar Credit Real Estate, Inc., a publicly-traded company which changed its name to Colony Credit Real Estate, Inc.

FS Investment Corp. III is a non-traded business development company (BDC) that invests in floating rate, senior secured loans of private U.S. middle market companies.

It is believed that Barbier and Dooley earned a high commission and alleged to be the real motivation for the sales.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.