Reif Law Group, P.C., a nationally recognized securities litigation and arbitration law firm, is investigating Baker Tilly Capital, LLC for selling private placement Qualified Opportunity Zone (QOZ) funds, including Block 216 QOF, LLC.
This investigation focuses on potential misconduct in the sale of these speculative investments to retail investors, particularly in light of recent reports indicating that Block 216, a skyscraper project in Portland, Oregon, featuring the Ritz Carlton Oregon, may be facing foreclosure.
Block 216: Opportunity Zone Investment
Marketed as a flagship Opportunity Zone project, Block 216 was intended to provide investors with significant tax benefits and attractive returns through Block 216 QOF, LLC. However, reports now suggest that the project is experiencing financial distress, with a possible foreclosure looming. This raises serious concerns about the viability of the investment.
These problems raise due diligence questions as to whether Baker Tilly Capital, LLC conducted proper due diligence before recommending the investment to its investor customers.
For example, Reif Law Group, P.C. discovered that a senior executive at the investment issuer, Barclay Grayson, pled guilty to fraud charges in connection with a group of investors who lost investment money at a prior financial firm.
Another example of potential improper due diligence was when the sponsor extended the offering raise of capital from December 2020 to December 2021 disclosing, among other things, Covid-19 delays. Reif Law Group, P.C. is investigating whether Baker Tilly Capital, LLC fully analyzed and advised its investor customers of the impact of this delay. We are investigating if Baker Tilly Capital, LLC disclosed how this delay may impact:
- The ability of Block 216 to meet its expectations within the disclosed time horizon;
- The reasonableness of the loan-to-debt ratio when the investment sponsor decided to raise less capital to close the offering;
- The ability of Block 216 to repay the bridge loan and the senior debt loan based on a lower capital raise and extending the sales period by one year;
- The long-term reasonableness of the investment offering to meet the target expectations disclosed before the supplemental disclosure in January 2021.
Opportunity Zone funds like Block 216 QOF, LLC are high-risk private placement investments designed to encourage economic development in distressed areas. While these funds offer potential tax deferrals and gain exclusions, they also carry substantial risks—including limited liquidity, long lock-up periods, and exposure to economic downturns in underdeveloped regions. The financial troubles surrounding Block 216 underscore these risks and highlight potential failures in disclosure and vetting.
Baker Tilly’s Claims Under Investigation
In its offering materials for Block 216 QOF, LLC, Baker Tilly Capital, LLC promoted its expertise in Opportunity Zone real estate investments, claiming to have a rigorous due diligence process. The firm positioned itself as a trusted advisor, suggesting that investors could rely on their vetting process to mitigate risk.
However, given Block 216’s initial capitalization delays, an executive felon and the financial struggles, investors are now questioning whether Baker Tilly Capital, LLC actually performed the requisite due diligence it promised—or if critical risks were downplayed or misrepresented.
At Reif Law Group, P.C., we are investigating whether Baker Tilly Capital, LLC failed to uphold its obligations under securities laws. Broker-dealers and investment advisors must conduct reasonable due diligence on private placement offerings and ensure that investment recommendations are in the best interest for their clients.
If Baker Tilly Capital, LLC overstated its due diligence, missed “red flags” in its due diligence and/or misrepresented the stability of Block 216 QOF, LLC or ignored warning signs during its evaluation process, investors who suffered losses may have legal grounds to pursue a claim against Baker Tilly Capital, LLC.
Why Investors Should Act Now
The potential foreclosure of Block 216 is a major red flag for anyone who invested in this Opportunity Zone fund through Baker Tilly Capital, LLC. Private placements like Block 216 QOF, LLC are typically illiquid and complex—often marketed to high-net-worth individuals seeking tax benefits. However, when projects struggle or fail, investors can face significant financial losses—losses that might have been avoided with proper due diligence and transparency.
Reif Law Group, P.C. is actively investigating whether Baker Tilly Capital, LLC:
✔ Failed to conduct reasonable due diligence on Block 216 QOF, LLC.
✔ Misrepresented the risks or overstated the potential returns of the investment.
✔ Recommended the fund to unsuitable investors, violating FINRA’s suitability rules and breaching the fiduciary duty standard of care.
If you invested in Block 216 QOF, LLC or other Opportunity Zone funds sold by Baker Tilly Capital, LLC, you may be able to recover your losses. Our firm has many years of experience representing investors to recover damages caused by professional misconduct, and we are prepared to fight for your financial interests.
Contact Reif Law Group, P.C. for a Free Consultation
At Reif Law Group, P.C., we are California licensed attorneys who try cases in court and arbitration.
Being licensed attorneys in California provides great benefit to California victims because we are very experienced bringing cases under California law.
If you are not a California victim, Reif Law Group, P.C. is still a stellar choice for you because Baker Tilly Capital, LLC, solicited investments for Block 216 QOF, from its California offices.
If you suffered financial losses due to investments in Block 216 QOF, LLC or other Qualified Opportunity Zone funds sold by Baker Tilly Capital, LLC, contact Reif Law Group, P.C. immediately.
We offer free, confidential consultations to review your investment and discuss your legal options. Our securities arbitration attorneys work on a contingency fee basis—meaning you pay nothing unless we recover compensation for you.
Call us today at 310-494-6500 or reach us online to speak with one of our experienced securities attorneys. Securities arbitration cases are time-sensitive, and statutes of limitations may apply—so don’t wait to protect your rights.
About Reif Law Group, P.C.
Reif Law Group, P.C. is a leading securities trial and arbitration law firm dedicated to protecting investors nationwide. We focus on recovering investment losses caused by broker misconduct, breach of fiduciary duty, fraud and unsuitable recommendations. Our team is committed to holding wrongdoers accountable and helping our clients recover what they deserve.
If you’ve been impacted by misrepresented Opportunity Zone investments, we are here to fight for your financial future.
