Zamansky LLC Investigates Sales of NRIA Portfolio Partners Fund I, LLC to Investors
On October 13, 2022, the SEC charged New Jersey-based National Realty Investment Advisors LLC (NRIA) and four of its former executives with running a Ponzi-like scheme that raised approximately $600 million from about 2,000 investors. Most of this money was raised for the NRIA Portfolio Partners Fund I, LLC, which was a private, alternative investment real estate investment trust (REIT).
The SEC’s complaint alleges that beginning in 2018, NRIA and its executives raised funds by promising investors their money would be used to buy and develop real estate properties, which would generate profits through a fund that NRIA set up to invest in the projects. Investors were allegedly promised returns of up to 20 percent. In reality, the SEC complaint alleges, investor money was used to pay distributions to other investors, to fund an executive’s family’s personal and luxury purchases, and to pay reputation management firms to thwart investors’ due diligence of the executives. However, NRIA had little to no revenue, and it and the fund filed for Chapter 11 bankruptcy protection on June 7, 2022.
Our firm is investigating sales of the NRIA Portfolio Partners Fund I, LLC (the “NRIA Fund”) by financial advisors and broker-dealers. Broker-dealers and financial advisors were required to perform due diligence on the NRIA Fund before selling it to investors, and research to make sure that it was suitable for investors.
What NRIA Fund Investors Can Do
If you are or were an investor in the NRIA Fund who purchased through a financial advisor or broker-dealer, you may have a legal claim to recover your loss. To have your situation reviewed without obligation or cost to you, email firstname.lastname@example.org or call (212) 742-1414.