- Report: #101121
Complaint Review: Wells Real Estate Funds - Atlanta Georgia
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Author Not Confirmed
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Wells Real Estate Funds
6200 The Corners Parkway Atlanta, 30092 Georgia, U.S.A.
Phone:
770-7449-7800
Web:
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Wells Real Estate Funds Refuses to Give Me Back My Money!!! Won't Redeem Shares!! Atlanta Georgia
Wells Real Estate Funds is a private investment company, sold by slick brokers ... but not those you might see advertising on the evening news. This company invests in office buildings in the US. The brokers brag about how these buildings are completely leases, Class A buildings, all that sort of thing. Your investment is rock solid. You earn interest on your money, and can use the interest to buy additional shares in the Fund. The prospectus is, as always, a huge thick document with microscopic print. The broker, with a straight face and repeating things endlessly, promises this is very safe 'in these troubled times.' You can get your money out any time you want, except possibly right at the end of the year.
Well, it's a LIE, of course. As of May, 2004, no investors can get their money out of Wells Real Estate Funds. They claim that there is an escape clauses in the prospectus, and they can deny requests to withdraw money any time they want. Maybe they can. But is that how it was sold. Would ANYONE invest in this company if they knew in advance that their funds would be completely unavailable for, at minimum, 9 months, and maybe much much more.
Maybe this company is in financial trouble, who knows? The brokers, of course, and the company, of course, say everything is fine. Just a 'big investor' needed HIS money out, and that used up all the money they could let out for 2004. Oh, great. Thanks for handling the big investor, and leaving smaller investors without any way to get their money back.
Stay away from Wells Real Estate Funds!!!!! Your money is going into a one-way vault. Theirs.
James
Richmond, Virginia
U.S.A.
Well, it's a LIE, of course. As of May, 2004, no investors can get their money out of Wells Real Estate Funds. They claim that there is an escape clauses in the prospectus, and they can deny requests to withdraw money any time they want. Maybe they can. But is that how it was sold. Would ANYONE invest in this company if they knew in advance that their funds would be completely unavailable for, at minimum, 9 months, and maybe much much more.
Maybe this company is in financial trouble, who knows? The brokers, of course, and the company, of course, say everything is fine. Just a 'big investor' needed HIS money out, and that used up all the money they could let out for 2004. Oh, great. Thanks for handling the big investor, and leaving smaller investors without any way to get their money back.
Stay away from Wells Real Estate Funds!!!!! Your money is going into a one-way vault. Theirs.
James
Richmond, Virginia
U.S.A.
2 Updates & Rebuttals
J
McLean,Virginia,
U.S.A.
WELLS REIT - More Bad News
#2Author of original report
Fri, September 03, 2004
** Now a Price Reduction for Dividend Reinvestment ** Probably as a result of terminating share redemptions early for 2004, and the Wall Street Journal article, Wells must be hearing from shareholders. Now they are forced to lower the price of shares purchased with dividend reinvestment. Usually a business lowers prices when things aren't selling. This is probably the case here: shareholders are bailing out of dividend reinvestment, making Wells pay out more real cash. To try and stop this, they are lowering the price of shares if owners stay in dividend reinvestment. As a kicker, brokers who can talk their clients into staying with dividend reinvestment get a commission of fifty cents ($0.50) a share on all shares their clients purchase this way. This is after they got commissions of about 14% the first time. For brokers, Wells REIT is the gift that keeps on giving. For shareholders ... well, you gotta wonder why those brokers liked recommending Wells REIT soooo much. NOT! Don't fall for it. Take the cash!
J
McLean,Virginia,
U.S.A.
Wells Real Estate Funds Ripped by Wall Street Journal
#3Author of original report
Fri, August 06, 2004
What an interesting coincidence! See the Wall Street Journal, today's lead article upper right front page, on Leo Wells and these Real Estate Investment Trusts. The Wells funds are described as 'the roach motel" investment ...your money checks in but can't check out! Exactly. The article also shows that some investors have NEVER been able to get their money out!!! Wells himself was barred by the SEC for improper payments to brokers, giving big parties to induce them to sell his products. All the while spouting Bible verses. See the Journal, today, Thursday, August 5, 2004!
