Retirees - Law Offices of Robert Wayne Pearce

Apr 9, 2025

KBS REIT I Like Other Non-Traded REITs Is a Disaster For Retirees Throughout the United States

The Law Office of Robert Wayne Pearce, P.A. has filed KBS REIT I claims to recover losses for investors in KBS Real Estate Investment Trust I (“KBS REIT I”) after learning that shares which they purchased for $10 per share now have an “estimated” value of only $5.16. In his March 26, 2012 letter to shareholders, chief executive Charles Schreiber, Jr. also told Mr. Pearce’s clients that they would no longer receive their monthly distribution payments, which had been reduced to less than $.53 per share.

Apr 9, 2025

Watch Out Florida Retirees–Higher Yields Involve Greater Risk

The prospect of several more years of extremely low interest rates is causing people who depend on interest income to accept Wall Street’s recommendations to purchase relatively illiquid and opaque alternative investments like structured products, non-traded REITs, hedge funds and variable annuities. (“Itchy Investors Ramp Up the Risk,” Wall Street Journal). Regulators worry that the increased risks associated with such investments are not being explained to investors.

Apr 9, 2025

Retirees Suffer Massive Losses in Warsowe Acquisition Corp. Debentures

The Law Offices of Robert Wayne Pearce is currently investigating NFP Securities for recommending Warsowe Acquisition Corp. Debentures, which caused many of their clients to lose money. Andrew Rosenberg and Stuart Horowitz, former stockbrokers with NFP Securities, recommended Warsowe Acquisition to clients in 2007 along with other risky and illiquid investments such as the Hennessey Financial Monthly Income Fund (also known as Capital Solutions) and Inland American Real Estate Trust. Warsowe Acquisition began winding down operations as early as March 2008, which caused investors to lose a significant amount of principal in addition to the income they were promised but never received.

Apr 9, 2025

Elder Financial Abuse Epidemic Not Only in Florida But Nationwide

Elder financial abuse is an “epidemic” and likely to become much worse given that 77 million baby boomers are entering their so-called “retirement” years (See “Golden years? Financial elder-abuse now epidemic,” Andrew Osterland, InvestmentNews). Between 500,000 and 5 million elders are abused, neglected or exploited each year, and the abuse is often unreported. “Elders can be afraid to report abuse, for a variety of reasons,” one practitioner was quoted as saying, adding: “In many cases, they may depend on the abuser and fear reprisals from them. They may be afraid of being placed in a nursing home or dread the stigma of domestic violence.”

Apr 9, 2025

Florida Retirees–Be Careful With Lump Sum Retirement Payments

Hundreds of thousands of retirees are likely to face a choice of taking a lump sum retirement payment or company sponsored retirement annuity over the next few years. That decision could improve the retiree’s financial situation or result in significant losses with no realistic possibility of recovery. Offers like those call for careful study and analysis by qualified and unconflicted advisers. Unfortunately, in the past, retirees have often fallen victim to bad advice from unscrupulous or incompetent advisers.

Apr 9, 2025

Seniors Are Targeted in Variable Annuity Sales Nationwide

As investors age, they become more vulnerable to making errors in their finances. This is because the ability to make sound financial decisions begins to peak in one’s mid-50s. For this reason, retirees should be prepared to handle the risk of diminished capacity in order to prevent predatory or fraudulent sales tactics against them before it is too late. Some precautionary measures may include preparing a will and empowering an attorney to handle healthcare and financial issues. Still, brokers are able to convince senior investors into buying variable annuities by misrepresenting the true nature and cost of the product. Variable annuities are generally unsuitable for elderly investors, particularly those over 70 years for several reasons.

Apr 9, 2025

The Cornerstone Core Properties REIT Collapses and Investors Throughout the United States Sue!

Investors in the Cornerstone Core Properties REIT Inc. were recently told by the company that the shares, once valued at $8, are now worth $2.25 (see article in InvestmentNews by Bruce Kelly). The article references a letter from the REIT’s chairman and chief executive Terry Roussel, as saying “The estimated per-share value has been adversely affected by the recent global economic downturn, negatively impacting our small business tenant base, which has resulted in approximately $43 million of previously announced impairment charges recorded in the second and third quarters of 2011.”

Apr 9, 2025

Florida Fixed-Income Investors–Watch Out for “Death Puts” in CDs and Structured Notes!

With interest rates stuck at record lows, and retirees or those on the brink of retirement looking for higher yields, Wall Street has capitalized on this dilemma by selling an array of alternative products like “structured notes” that promise higher yields but come with higher (often undisclosed) risks, and by marketing dividend stocks as alternatives to bonds, when, in fact, they are riskier than bonds.

Apr 9, 2025

Inland American REIT Under SEC Investigation

According to the Wall Street Journal, the Securities and Exchange Commission is investigating Inland American Real Estate Trust (Inland American REIT) for potential violations of federal securities laws. According to the report, the SEC is looking at activity of Inland American REIT to determine if the REIT committed violations related to management fees, the timing and amount of distributions paid to investors, and transactions with affiliates.

Apr 9, 2025

Investors Nationwide Beware – Don’t Fall For Early Retirement Investment Schemes that Promise Too Much!

The thought of retiring early is an attractive notion. Especially when faced with a pitch that promises that one can cash in company retirement savings in his or her 50s, reinvest the money, and live comfortably off the proceeds. Many do not have the ability to say no to this alluring proposal, but they should. This is because there have been instances in which employees who had built up sizeable retirement savings have been misled and financially harmed by flawed, and even fraudulent, early retirement schemes.