Axa Advisors, LLC Named in FINRA Arbitration for Unsuitable REIT Losses

A former client alleges that two representatives mismanaged her investments.

The Sonn Law Group is investigating allegations that Axa Advisors, LLC, 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.

A former client of Axa Advisors has filed a FINRA arbitration for unsuitable REIT losses, among other things. The client alleges that two of Axa’s representatives, Gloria Barbier and Kevin Dooley, mismanaged her investments. 

According to the FINRA claim, the client was retired and was seeking a consistent stream of income to meet her living expenses. Barbier and Dooley recommended that the client invests in three non-traded alternative investments, including Northstar Healthcare Income, Northstar Real Estate Income II, and in FS Investment Corp. III.

Barbier and Dooley misrepresented to the client the features and characteristics of the three non-traded alternative investments: Northstar Healthcare Income, Northstar Real Estate Income II, and in FS Investment Corp. III. The REITs were unsuitable, high risk and illiquid alternative investments.

Northstar Healthcare Income is a non-traded REIT that invests in equity, debt and securities investments in healthcare real estate. Its shares were sold at $10 a share. In December 2017, Northstar Healthcare Income reduced its distribution payments by more than 50%.

On December 18, 2018, its shares were devalued to $7.10 a share, however, the shares are illiquid and trade a steep discount in the secondary market in the $2-$3 range. In early 2019, Northstar Healthcare Income announced the suspension of all distribution payments to investors.

Northstar Real Estate Income II is a non-traded REIT that invests in real estate debt. In January 2017, Northstar Real Estate Income II merged into Colony Northstar Credit Real Estate, Inc., a publicly-traded company that changed its name to Colony Credit Real Estate, Inc.

FS Investment Corp. III is a non-traded business development company (BDC) that invests in floating rate, senior secured loans of private U.S. middle-market companies.

Contact Us Today

The Sonn Law Group is currently investigating allegations that Gloria Barbier and Kevin Dooley 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.