Gihan Fernando Allegedly Misrepresented REITs
Gihan Fernando (CRD# 4469669), a broker registered with Cetera Investment Services, misrepresented REITs, according to dozens of investor disputes. MDF Law is investigating the Houston, Texas financial professional for similar conduct. If you have concerns about investments in your accounts, call for a free consultation with our team.
To learn more about the allegations against Mr. Fernando, continue reading this post. The information below is based on his BrokerCheck profile, a Financial Industry Regulatory Authority record accessed on September 16, 2024.
REIT Disputes Settled for 7 Figures
Between 2020 and August 2024, more than 50 parties of investors filed disputes involving Mr. Fernando. The disputes involve investments in non-traded real estate investment trust products, with many alleging misrepresentation during the sales process. His former member firm has settled 58 of the disputes for a total of more than $7.5 million. Two disputes are still pending, meanwhile, seeking more than $644,000 in damages.
Gihan Fernando Defends Against Allegations
Mr. Fernando issued statements included with the disclosures of the settled and pending disputes. These statements explain that the disputes involve non-traded REIT investments offered by his former employer, Bank of Oklahoma Financial. He asserts that the firm claimed to have performed extensive due diligence to ensure the investments would “perform as promised.” Additionally, he asserts that he was directed to sell the products.
“When COVID hit and real estate firms were struggling, the investments became difficult to liquidate and customers complained about that,” his statement continues. “BOK Financial made a corporate decision to purchase these investments back from the customers. The amount that BOK Financial reports as being paid to the customer is the amount that BOK Financial paid the customer to buy back the investment.” In conclusion, he writes, he followed his employer’s instructions and was not involved in the settlements.
Texas Sanction Alleged Inequitable REIT Sales
On July 2, 2024, the Texas State Securities Board released a disciplinary order sanctioning Mr. Fernando. According to the order, the Board found that he recommended illiquid non-traded REITs to investors, relying on information “provided by the issuers rather than conducting sufficient due diligence on his own.” As the order states, he believed that the REITs he recommended “were principal protected and liquid after five (5) years,” and recommended them to customers on this bases. However, Texas found, the products “were illiquid for a period longer than five (5) years” and did not protect the investors’ principal. As such, regulators found that his sales constituted an inequitable business practice, issuing Mr. Fernando an official reprimand.
FINRA: Fernando Based in Houston, Texas
Gihan Fernando began his career as a broker in 2002, when he registered with Morgan Stanley in Houston, Texas. In 2003 he left the firm for BOK Financial’s office in Bellaire, Texas, where he remained until 2023. The following year, he registered with Cetera Investment Services’ office in Houston, where he is still registered today. With 22 years of experience as a broker, he has completed five industry exams, including the Series 31 and the Series 7.
REIT Complaints? Call MDF Law for a Free Consultation
Did you invest in non-traded REITs or other investments recommended by Gihan Fernando? You have rights as an investor, including the right to file a FINRA arbitration claim to pursue damages. To receive a free consultation about your options, call MDF Law at 800-767-8040 today for a free chat with our team. We accept cases on contingency, meaning clients only pay a fee if they recover losses. Your time to file a claim may be limited, so we encourage you to move swiftly. Call MDF Law today.