Tag Archives: Securities Class Action

MVP REIT Loss Recovery

If you lost money in MVP REIT I, MVP REIT II or Parking REIT, please call 1-866-817-0201 to speak to a lawyer about potential loss recovery.  Most cases are handled on a contingency basis, where the attorney does not receive fees unless there is a recovery.

The Financial Industry Regulatory Authority (FINRA) is investigating whether MVP American Securities violated federal securities laws or the authority’s rules when it raised money from investors from 2012 to 2017.  This was disclosed in a corporate filing filing with the Securitites and Exchange Commission concerning Parking REIT, the subsequent entity of MVP REIT I and II.

Michael Shustek, through MVP American, raised approximately $180 million from sales of MVP I and II.  Though the exact nature of the investigation is still unknown, the most likely violation would be the sale of the investments with an undisclosed conflict of interest.The investigation does not only concern MVP American, but also Shustek.

investingstockphoto 1Other reports critical of Shustek and MVP state the two engaged in behavior that was abusive to investors.  This was done by having the REIT buy and sell the same six properties repeatedly, with little to know economic motivation to do so.  More details concerning this investigation can be found in the Las Vegas Review Journal.

These highly aggressive investment may also be unsuitable for investors seeking only moderate risk or retirement income.  The sale of such an unsuitable investment is a securities violation and may entitle an investor to recovery of losses.

This is not the first time Shustek has been in trouble with securities regulators.  In 1999, Nevada regulators investigated him for potential securities violations in running Del Mar Mortgage.  He has also been previously investigated by the SEC for his dealings with Vestin real estate for utilizing misleading information in sales presentations.

Jeffrey Pederson represents investors around the country in arbitrations in front of FINRA.  Please call for a free initial consultation.