Arizona Tribune - Two Investor Groups File Federal Lawsuits Against First National Realty Partners Alleging Fraud and Misrepresentation

The first group of seven (7) investors, who were initially named in a civil suit brought by FNRP earlier this year, have responded with counterclaims asserting that they were misled about key aspects of their investments. Their allegations include the concealment of substantial fees and commissions, exaggerated financial projections, and the use of affiliated entities to funnel investor money without proper disclosure.

Shortly after the counterclaims were filed, an additional group of eighteen (18) investors brought a separate federal lawsuit containing similar factual allegations. These investors, who are not affiliated with the first group, allege they were similarly misinformed about the structure, risks, and fee arrangements associated with FNRP's real estate investment offerings. The second complaint also raises concerns about what the plaintiffs describe as "conflicted" asset management fees and insufficient transparency regarding acquisition costs and third-party relationships.

In both legal actions, the plaintiffs allege that the use of closely-held affiliates - including FNRA - created conflicts of interest that were not adequately disclosed. They also claim that FNRP's financial models overstated internal rates of return and failed to account for significant encumbrances and fees that affected the actual performance of the properties.

The lawsuits seek multiple forms of relief, including compensatory and punitive damages, rescission of the investments, and disgorgement of allegedly improper gains. The legal matters are currently in early stages, and no findings have been made by the court. FNRP and the named individuals have denied the allegations and intend to defend the cases vigorously.

These cases are both pending before the Hon. Michael A. Shipp in the U.S. District Court for the District of New Jersey.

DISCLAIMER: The above claims are allegations only. No court has found any party liable, and the defendants are presumed innocent of all claims unless and until proven otherwise.

Case Administrator
Securities Arbitration Law Group, PLLC
1200 G Street NW Suite 800
Washington DC 20005
202-444-4222
www.salawgrp.com
[email protected]

SOURCE: Securities Arbitration Law Group

View the original press release on ACCESS Newswire

M.Robinson--AT