Home News Rich Uncles Reaches Settlement of SEC Investigation

Rich Uncles Reaches Settlement of SEC Investigation

BrixInvest LLC, the external advisor to multiple real estate investment trusts including RW Holdings NNN REIT Inc. – also known as Rich Uncles NNN REIT Inc., has reached a settlement with the Securities and Exchange Commission, resolving the previously disclosed fact-finding investigation.

BrixInvest LLC, the external advisor to multiple real estate investment trusts including RW Holdings NNN REIT Inc. – also known as Rich Uncles NNN REIT Inc., has reached a settlement with the Securities and Exchange Commission, resolving the previously disclosed fact-finding investigation into the advertising and sale of securities and compliance with broker-dealer regulations.

Since 2017, the SEC has been conducting an investigation where NNN REIT and certain associates have received and responded to subpoenas, including requests for various documents related to the company, the company’s sponsor, and the offering.

As part of the settlement, the SEC accepted the offer that allows RW Holdings NNN REIT to continue its offering through a FINRA registered broker-dealer.

“The former executive officers of our external advisor were early real estate crowdfunding pioneers who took steps into the then unclear space of a newly formed industry,” said Aaron Halfacre, chief executive officer of RW Holdings NNN REIT. “If the real estate crowdfunding industry is to grow to its fullest market potential, then I believe it needs to realize that disruptive technology and disintermediated business models can, and should, exist within the framework of FINRA’s rules and standards.

He added, “I encourage my peers at other real estate crowdfunding companies, if they haven’t already done so, to raise the investor protection standards for our industry by seeking to have their website platforms, that sell their multiple offerings, become registered through a broker-dealer. Prior to joining NNN REIT, I had the pleasure of working at Realty Mogul – one of the first real estate crowdfunding companies to seek FINRA registration, and I am now happy to say that NNN REIT will too.”

RW Holdings NNN REIT Inc. recently disclosed plans to merge with affiliated REIT Rich Uncles REIT I and acquire BrixInvest, its external advisor.

RW Holdings NNN REIT owns 24 operating properties, a 72.7 percent tenant-in-common interest in an office property, and one parcel of land, including 10 office, nine retail, and five industrial properties with approximately 1.5 million square feet of leasable space. Through August 31, 2019, the company had raised $176.6 million in investor equity.

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