Seldom a day goes by when there is not a news story about financial elder abuse, nursing home neglect, annuities fraud or fraudulent investments. Now add to that list commercial real estate securities fraud.
Recently, eleven plaintiffs brought suit in Orange County Superior Court against Argus Realty Investors and Argus Realty when commercial real estate securities in TIC investments sold to seniors and purported by Argus to be of “institutional grade” allegedly turned out to be, not an investment opportunity for the seniors but a gamble in which the odds were weighted heavily in favor of Argus Realty Investors and Argus Realty. The suit alleges that the sponsors of the scheme reaped millions by bilking seniors’ out of their life savings with exorbitant charges for property management fees and costs. http://www.courthousenews.com/2012/12/06/52888.htm
While Section 1031 of the US Internal Revenue Code http://www.irs.gov/uac/Like-Kind-Exchanges-Under-IRC-Code-Section-1031 allows sellers to defer capital gains tax when they sell properties that have been used for business or investment purposes provided they re-invest the money in similar property or “like-kind exchanges”, complainants allege that the investment scam offered by Argus did not meet that standard.
The lawsuit alleges that Argus, under an imaginary cloak of soundness and prudence, misrepresented the facts, telling investors it had acquired over $1 billion of commercial real estate with 9 million square feet under management. Claimants also allege that TIC investment securities were sold to investors at an excessively inflated markup of nearly 13 percent. The hook to investors was the possibility of owning shares without the burden of individual property management however, the “emperor wore no clothes” as the plaintiffs realized too late when the properties were foreclosed upon and they lost their investments.
If you or someone you know may be the victim of financial fraud, elder abuse, annuities fraud or commercial real estate securities fraud, consult the services of a qualified attorney.
The Evans Law Firm represents victims of financial exploitation, and elder abuse in California. If you or a loved one has been the victim of financial exploitation, elder abuse, or nursing home abuse, contact The Evans Law Firm for a free and confidential consultation at 415-441-8669 or e-mail firstname.lastname@example.org.