SEC INvestigation of Triplenet is Closed

By
Services for Real Estate Pros with 1031reviews.com

SEC announced closing its investigation on Triplenet without any action. A good sign for the industry. However, I would guess with the impending downturn and with some TIC offerings not meeting their promised yields, scrutiny will increase. http://money.cnn.com/news/newsfeeds/articles/prnewswire/200806020834PR_NEWS_USPR_____AQM070.htm

 

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Comments (1)

Lisa Lambert
The Law Offices of Elisabeth A. Lambert - Fresno, CA
Esq. 1031 Exchange Expert

David:

Yes, it is a great sign that the SEC concluded its investigation with a No Enforcement Action Recommendation.

The SEC began the investigation in 2004. It was investigating disclosures related to Triple NNN's offerings of public and private securities. Here's a link to an excerpt of NNN 2003 VALUE FUND LLC's 10-Q filing with the SEC that describes the nature of the investigation.

http://sec.edgar-online.com/2006/11/14/0000892569-06-001375/Section14.asp

I have been observing the TIC industry from the point of view of a Qualified Intermediary for the past three years. Given the fact that the industry is still fairly young, it is not surprising to see the SEC begin to making some investigations into the practices of some sponsors. The fact that there may be some investigations does not mean that all TIC products are suspect but it underlines the client's need for an experienced financial advisor who understands the product and can perform substantial due diligence on behalf of their clients.

Thanks for providing the breaking news.

Lisa

Jun 05, 2008 11:17 AM