New York Securities Fraud Lawyers Blog
Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.
Malecki Law is currently investigating the potential for recovery of losses in Desert Capital REIT, a Henderson, Nevada based real estate investor, and its co-owned brokerage firm CM Securities.
Desert Capital is a real estate investment trust (REIT) that is believed to have been financing short-term high interest mortgage loans. These types of loans and any dividends are believed to have been paid to investors through real estate transactions, and are today generally thought to be risky investments, with potential for high gains due to their interest rates, but with equal if not unwarranted potential for resolute failure, and a possible lack of accountability toward investors.
Whereas such loans would have been more apt to be endorsed by brokers, the housing crisis has left Desert Capital with ten of millions of dollars in annual losses. The Las Vegas Review-Journal reports that the company lost $26 million in the third quarter of 2010 alone: the SEC has since issued a subpoena. CM Securities functioned as a brokerage firm owned by the same management as Desert Capital, and heavily marketed the REIT as a sound investment.
Given its current state, Desert Capital has issued statements declaring a likely inability to continue, with the concern of liquidation on their horizon. No stock in the company is traded on any exchange, leaving those who’ve invested in the company with what may be illiquid, worthless shares of an insolvent organization.
It is the right of any and all investors who believe they may have suffered losses as a result of recommendations of their financial advisor to contact our offices to explore their legal rights and options. If you or a family member invested in Desert Capital’s REIT or made transactions through CM Securities, contact the securities fraud lawyers at Malecki Law for a free consultation and case evaluation at (212) 943-1233.