Wells Timberland REIT
The Financial Industry Regulatory Authority (FINRA) has fined Georgia-based brokerage firm Wells Investment Securities, Inc. (Wells) $300,000 for misrepresentations made in connection with sales of Wells Timberland REIT, Inc., a non-traded real estate investment trust.
Wells was the wholesaler for the Timberland REIT which invested in timber-producing land. As the wholesaler, Wells reviewed, approved and distributed marketing materials about the product. The investigation conducted by FINRA found that more than 115 of the advertising and marketing materials distributed by Wells concerning the Timberland REIT, contained misleading, unwarranted or exaggerated statements. According to FINRA, the initial offering prospectus stated that Timberland intended to qualify as a REIT by year-end 2006 but in fact, it did not qualify as a REIT until 2009. FINRA claimed that the majority of marketing materials failed to disclose the significance of Timberland’s non-REIT status or suggested that it was a REIT when it was not.
If you suffered losses as a result of an investment in Wells Timberland REITs, contact McCabe Rabin for an evaluation of your potential claim at 877-915-4040 or Click Here to fill out our contact form.