The Parking REIT, a non-traded REIT formed in December 2017 by the merger of MVP REIT and MVP REIT II, invests primarily in parking lots and garages in the United States.
Investors who bought into The Parking REIT may have suffered losses due to illiquidity, lack of transparency in valuation, and substantial conflicts of interest.
The company changed its name last November to Mobile Infrastructure Corp. and no longer qualifies as a REIT so is no longer required to distribute any amounts to its stockholders.
According to the Securities and Exchange Commission which charged an executive of the Parking REIT, and his wholly owned investment advisory firm, Vestin Mortgage LLC with fraud.
The SEC alleged that since at least 2012, the executive “fraudulently enriched himself and one of the REITs he controlled, The Parking REIT”, at the expense of two publicly traded REITs that he earlier had founded, Vestin Realty Mortgage I and Vestin Realty Mortgage II.
The executive allegedly funneled $29 million from Vestin Realty Mortgage I and Vestin Realty Mortgage II into The Parking REIT and then purportedly initiated “money-losing transactions in which the same six buildings were repeatedly re-sold”, all to allegedly benefit himself and The Parking REIT, according to the complaint.
The SEC alleged that the executive violated his fiduciary duties to the Vestin REITs including allegations that he made two separate securities transactions to get the companies to pay him almost $10 million. The executive was also allegedly charged with misleading investors by having the Vestin REITs make false and misleading statements in their public filings, which purportedly hid his alleged self-dealing.
If you are an investor that lost more than $100,000 in The Parking Reit you should consider all legal options. If you wish to discuss your particular situation and the potential for the recovery of your investment losses, or you have information of interest, please contact us for an evaluation of your potential case.