Andrew Krakaur, Broker for Axa Advisors, LLC Named in FINRA Arbitration for Corporate Capital Trust and Northstar REIT Losses

A former client alleges losses due to unsuitable investments in Corporate Capital Trust, Inc., and Northstar Real Estate Income Trust II.

The Sonn Law Group is investigating allegations that Andrew Krakaur recommended unsuitable investments. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Andrew Krakaur has been a registered representative of Axa Advisors in Woodbury, New York since 1987. 

According to the FINRA claim, Krakauer recommended that the clients invest in two non-traded alternative investments: Corporate Capital Trust, Inc. and Northstar Real Estate Income Trust II.

It is alleged that Krakauer represented that CC Trust and Northstar Trust pay a consistent “guaranteed” 7% dividend or slightly higher if reinvested and are safer investments than investing in a stock portfolio. He told the clients that they were investing in high-quality real estate.

Krakauer further represented that the investments had a solid track record and had never sustained losses in the past 10 years. Krakauer represented that the investments were safe and low risk. He further represented that the investments could not be sold for five years. Krakauer did not disclose any risks when he solicited the investments.

According to the claim, Krakauer’s investment strategy to concentrate each account in two non-traded alternative investments was also unsuitable. Krakauer’s strategy of concentrating the clients’ accounts in two non-traded alternative investments was allegedly motivated by an exceptionally high commission. Krakauer allegedly failed to recommend an adequately diversified and suitable portfolio.

A reasonably designed and professional portfolio would have produced a significant positive return during the same period of time rather than losses.

Northstar Trust was a non-traded real estate investment trust (REIT) that invested in real estate debt. In January 2017, Northstar Trust merged into Colony Northstar Credit Real Estate, Inc., a publicly-traded company that changed its name to Colony Credit Real Estate, Inc. Colony Credit now trades at approximately $14.33 a share.

Corporate Capital Trust, Inc. was a non-traded business development company (BDC) that made loans to middle-market businesses. Corporate Capital Trust, Inc. went public in November 2017. In December 2018, Corporate Capital Trust, Inc. merged with FS Investment Corp. and the new entity is FS KKR Capital Corp. FS KKR Capital Corp. now trades at approximately $5.97 a share.

Contact Us Today

The Sonn Law Group is currently investigating allegations that Andrew Krakaur recommended unsuitable investments. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.