San Diego TIC, 1031 Exchange and Ponzi Scheme Attorney
While not all investments involve fraud, it pays to be wary of tenant in common (TIC) investment opportunities. Rather than simply looking at a color brochure, investors should read and understand the complex private placement memorandum detailing the rights and responsibilities of the project sponsor and how returns are proposed to be generated.
At the Southern California law firm of Virginia H. Gaburo & Associates based in San Diego, attorney Virginia H. Gaburo provides over 20 years of investment and real estate law experience. Ms. Gaburo has extensive experience in securities and investment law matters and she is also a member of the FINRA (formerly NASD) panel of arbitrators.
For additional information about our law firm and the benefits of retaining our legal services, please visit our firm overview page.
To discuss your investment schemes issue with an experienced investment fraud lawyer, please call attorney Virginia H. Gaburo at 858-546-0183, or contact us online.
Tenant In Common Investments
TIC investments can be structured so as to place investors at great risk. As unregistered securities they offer little SEC regulation, and there are no reporting requirements. With no public information available, investors must be knowledgeable about the underlying projects involved in these investments in order to avoid financial disaster.
Many TIC investments involve the assumption of debt by the individual investors, singly and/or as a group. They are frequently highly leveraged deals. Those securities laws that do apply focus on full and complete disclosures, and not on the viability or merits of the investment scheme proposed.
1031 Exchanges: Reading the Fine Print
Some TIC investment schemes claim the investment is "1031 exchange-qualified," a process allowing you to exchange one property for another and defer any capital gains tax upon sale. However the fine print will usually disclaim any such warranty, and will advise you to consult with your own independent qualified tax attorney.
Avoiding Ponzi Schemes
Fraud can occur with TIC investments, including Ponzi schemes. This type of investment scheme is named after Charles Ponzi who became famous during the 1920s. The scheme involves creating layers of investors to pay certain percentage returns to the prior layer of investors, until the scheme collapses because earnings only come from new investors, and not because the money was properly invested.
Whether it's avoiding a questionable private placement offering which may be marked by large sales commissions and which may offer more certain benefits to the seller than to the investor- to other forms of investment fraud and misrepresentation, Virginia H. Gaburo & Associates is here to protect your rights and interests.
To schedule a confidential consultation to discuss how we can help you resolve an investment scheme issue, please call attorney Gaburo at 858-546-0183, or, if you prefer, you may fill out our intake form and we will contact you.
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