Denied REIT Complaint Against Voya Advisor Michael Zahm

Voya Financial Advisors advisor Michael Zahm (CRD# 6381591) allegedly misrepresented an investment, according to an investor complaint that was denied by his member firm. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor in Fishers, Indiana.

Mr. Zahm’s BrokerCheck report discloses one recent investor complaint. Filed in March 2022, it alleged that as a representative of Equitable Advisors, he misrepresented material facts relating to an unsuitable investment in a real estate investment trust (REIT) in 2015. The complaint alleged unspecified damages and was denied by the firm, which “found no basis to the customer complaint,” according to a statement on the disclosure. (When a complaint is denied, for reference, this is not necessarily mean it has no basis; customers can still pursue other actions, like FINRA arbitration claims.)

FINRA has cautioned investors to take care when considering investments in real estate investment trusts, in particular non-traded REITs. Such investments which aren’t traded on national stock exchanges, and as FINRA noted in a 2016 investor alert, are “generally illiquid, often for periods of eight years or more.” The alert notes that non-traded REITs may have limited early redemption opportunities and steep fees, warning readers that they “are rarely, if ever, suitable for short-term investors,” and may even pose significant illiquidity risks for long-term investors. As a 2011 investor alert explained, distributions from non-traded REITS “are not guaranteed and may exceed operating cash flow.” Investors interested in learning more about the risks associated with REIT investments can find relevant information in FINRA’s web resources.

According to the Financial Industry Regulatory Authority, Michael Zahm holds seven years of securities industry experience. Based in Fishers, Indiana, he has 

been a representative of Voya Financial Advisors since 2016. He was formerly registered with AXA Advisors in Indianapolis, Indiana from 2014 until 2016. His credentials include the passage of three securities industry qualifying exams: the Uniform Combined State Law Examination, or Series 66; the Securities Industry Essentials Examination, or SIE; and the General Securities Representative Examination, or Series 7. He is licensed in California and Indiana. (Information current as of May 19, 2022.)

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