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WARNING! Impending Investigaion–MOODY SECURITIES LLC and MOODY NATIONAL REIT I

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01
Apr

WARNING! Impending Investigaion–MOODY SECURITIES LLC and MOODY NATIONAL REIT I

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Moody Securities LLC and Moody National REIT I

 

We are currently investigating allegations made against Moody Securities LLC, a Houston, Texas-based securities brokerage firm.  Moody Securities is primarily a wholesaling dealer-manager of the Moody National REIT I, a publicly-held, non-traded REIT (or real estate investment trust).  Moody Securities derives virtually all of its income from the sale of the Moody National REIT I.

 

FINRA (the Financial Industry Regulatory Authority) brought a regulatory action against Moody Securities, alleging that it violated FINRA rules regarding underwriting compensation.  Under FINRA rules it is deemed “unfair and unreasonable” if the organization and offering expenses exceed 15% of the gross proceeds of the offering, and “unfair” or “unreasonable” if the underwriting expenses exceed 10%.  From April 2009 to October 2012, Moody Securities engaged in selling its REIT, seeking to raise over $1 billion.  However, it only raised approximately $11.4 million.

 

The organization and offering expenses were $4.1 million, which was roughly 36% of the gross offering proceeds and well above the 15% threshold.  The total underwriting expenses were $2.53 million, which included $1.79 million in salaries and bonuses paid to full time employees of Moody Securities and $746,000 in sales commissions to brokers and dealers.  The underwriting expenses made up nearly 24% of the gross offering proceeds, well in excess of the 10% threshold.

 

To settle these allegations, Moody Securities consented to pay a $350,000 “contribution” back into the Moody National REIT I, which is to be distributed to investors.

 

Our attorneys have represented over one thousand investors who have been defrauded by their financial advisor, stockbroker, or brokerage firm.  While we have offices in the Seattle-area and Denver, Colorado, we have represented investors throughout the country.  If you have lost money in Moody National REIT I or Moody Securities, and want to hear about ALL legal options, please visit https://www.israelsneuman.com and go to our CONTACT page  or call us at 720-599-3505.

 

Click to view Moody FINRA AWC

 

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.
10.0David P Neuman

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