ARC REIT Investor Losses: Up to $500K FINRA Claim Against J.W. Cole Involving Malcolm McKay

Investors Who Purchased ARC-Sponsored Non-Traded REITs May Be Entitled to a Financial Recovery

TAMPA, FL, UNITED STATES, October 27, 2026 /EINPresswire.com/ — National investment loss and securities law firm KlaymanToskes announces the filing of a Financial Industry Regulatory Authority (“FINRA”) arbitration claim against J.W. Cole Financial, Inc. The claim seeks up to $500,000 in damages on behalf of a couple who allegedly suffered losses in American Realty Capital (“ARC”) non-traded real estate investment trusts recommended by J.W. Cole financial advisor Malcolm Scott McKay (CRD# 2605922). The case is FINRA Case No. 26-02458.

Investors who suffered losses in ARC Healthcare Trust II, American Realty Capital – Retail Centers of America, American Realty Capital Global Trust, or their successor investments are encouraged to contact KlaymanToskes at 888-997-9956 or investigations@klaymantoskes.com for a free and confidential consultation to discuss their potential recovery options.

According to the Statement of Claim, the investors sought safety and dependable income and had limited investment experience. The claim alleges that McKay placed nearly $300,000 of their savings, including retirement funds, into three illiquid, high-commission ARC REITs sponsored by the same company. The investments were allegedly presented as “very safe, low-risk, income-producing” alternatives to the stock market.

The claim alleges that the investors were not adequately advised that the ARC REITs had no public trading market, that redemptions could be limited or suspended, or that distributions could be reduced and funded through borrowed money or investors’ own capital. They were also allegedly unaware that the values shown on their account statements did not necessarily reflect the amounts they could receive if the investments were liquidated.

The ARC REITs subsequently experienced significant liquidity and performance problems. ARC Healthcare Trust II, now known as National Healthcare Properties, Inc. (“NHP”), suspended redemptions, reduced distributions, and declined substantially before listing on Nasdaq in 2026 at approximately 88% below its original split-adjusted offering price. American Realty Capital Global Trust later became Global Net Lease, while Retail Centers of America was combined with other ARC-sponsored investments through a series of transactions. Both investments allegedly experienced substantial declines.

According to the claim, McKay continued to reassure the investors that the investments were sound and that they should remain patient while awaiting a liquidity event. When an unexpected financial need arose, the investors allegedly discovered that they could not access their money at anything close to the amounts originally invested.

“When recommending non-traded REITs, financial professionals have a responsibility to fully inform investors of the associated risks, including that the investments may be illiquid and leave investors without access to their principal for years,” said Lawrence L. Klayman, Managing Partner of KlaymanToskes. “Advisors and brokerage firms must clearly disclose these risks before recommending the investments and provide customers with accurate information when advising them whether to continue holding.”

Brokerage firms and their financial professionals are required to conduct reasonable due diligence, disclose material risks and conflicts, make recommendations that are in their customers’ best interests, and reasonably supervise the investments sold through their representatives. Affected investors who relied on recommendations by a financial advisor are entitled to pursue claims against the related brokerage or advisory firms.

As of October 20, 2026, McKay’s current FINRA BrokerCheck report reflects one settled customer dispute alleging that REIT investments were unsuitable. McKay has been registered with J.W. Cole Financial since 2010 and is based in Lakewood Ranch, Florida.

Investors who suffered losses in ARC-sponsored non-traded REITs recommended by Malcolm Scott McKay or another financial professional are encouraged to contact KlaymanToskes at 888-997-9956 or investigations@klaymantoskes.com for a free and confidential consultation to discuss their potential recovery options.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $650 million in Securities Litigation and FINRA Arbitration matters. KlaymanToskes has office locations in California, Florida, Nebraska, New York, and Puerto Rico.

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Contact

Lawrence L. Klayman, Esq.
KlaymanToskes, PLLC
+1 888-997-9956
investigations@klaymantoskes.com

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