Silver Law Group is investigating the Parking REIT after the company ceased paying its shareholders dividends and distributions. If you’ve invested in the Parking REIT or its affiliates, we may be able to help you recover your money.
The Parking REIT’s and its CEO’s Background
The Parking REIT was formerly two (2) separate non-traded REITs: MVP REIT and MVP REIT II. MVP REIT II changed its name to the Parking REIT and, in December 2017, the two (2) REITs merged.
The Parking REIT as well as many of the other affiliated companies are majority-owned, operated and run by Parking REIT CEO Michael V. Shustek, an individual who has previously been suspended by the Securities and Exchange Commission (the “SEC”).
MVP REIT began soliciting investors’ money in September 2012 and continued to fundraise for three (3) years afterwards. MVP REIT was sponsored by MVP Capital Partners, LLC and advised by MVP Realty Advisors, LLC – Shustek is affiliated with both entities. Shustek also is a majority owner of formerly FINRA-registered brokerage firm MVP American Securities.
The MVP REIT II, also sponsored by MVP Capital Partners and advised by MVP Realty Advisors, was registered in September 2015. MVP REIT II sought to raise over half a billion dollars in a one-year period but had only raised $45 million in that timeframe.
The Parking REIT and two (2) other non-traded REITs, Vestin Realty Mortgage I and Vestin Realty Mortgage II REITs, two (2) other REITs Shustek has an ownership interest in, are fraught with conflicts of interest. In conjunction with other entities affiliated with Shustek and another individual, Shustek has allegedly had the REITs repeatedly purchase and sell the same properties between the entities.
The Parking REIT’s distribution and dividends suspension comes in light of an investigation conducted by the REIT. In a filing declaring its inability to timely file a 10-K annual report, the Parking REIT stated that its inability to timely file was due to an internal investigation concerning possible wrongdoing by Shustek relating to:
- Potentially inaccurate disclosures by MVP American Securities to FINRA; and
- Potential inaccuracies in personal financial statements of Shustek.
What is a Non-traded REIT?
The Parking REIT is a public, non-traded REIT. A non-traded REIT invests in real estate like a publicly-traded REIT and is subject to the same IRS and SEC disclosure requirements, but there are some key differences:
- Non-traded REITs do not list on a national securities exchange;
- Non-traded REITs have limited resale value and are relatively illiquid;
- Non-traded REITs have significant front-end fees that can be as much as 15% of the price per share; and
- Distributions may come from the principal paid for the non-traded REIT.
Both FINRA and the SEC have issued investor bulletins and guidance concerning investing in non-traded REITs. Due to non-traded REITs’ lack of liquidity, when the non-traded REIT ceases to pay dividends, such as the case with the Parking REIT, it can leave the REIT relatively valueless.
Contact Our Firm if You’ve Invested in the Parking REIT
If you have invested in the MVP REIT, the MVP REIT II, and/or the Parking REIT, you may have a claim against the broker or brokerage firm that sold you the non-traded REIT(s). Contact our firm today to see how we can try to recover your losses. If we don’t recover money for you, you owe us nothing.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Please contact Scott Silver of the Silver Law Group for a free consultation at email@example.com or toll free at (800) 975-4345.