Iorio Law PLLC Investigates Baker Tilly Capital, LLC Over Block 216 QOF, LLC and Opportunity Zone Fund Sales

Update: On July 22, 2025, Ready Capital Corporation (NYSE: RC), the lender for the Block 216 Tower, took over ownership of the mixed-use project in downtown Portland, Oregon. The acquisition of the Ritz-Carlton Portland project occurred through a consensual deed-in-lieu arrangement with the developer. This event confirms a likely complete loss of the nearly $64 million in equity raised from investors.

Visit Iorio Law PLLC’s Block 216 Investor Recovery Center for more information regarding our law firm’s investigation.

Iorio Law PLLC, a nationally recognized securities arbitration law firm, is investigating Baker Tilly Capital, LLC, for its role in selling private placement Qualified Opportunity Zone (QOZ) funds, including Block 216 QOF, LLC. This investigation focuses on potential misconduct related to the sale of these high-risk investments to retail investors, particularly in light of recent reports indicating that Block 216, a prominent skyscraper project in Portland, Oregon, featuring the Ritz-Carlton Oregon, may be facing foreclosure.

Block 216: A Struggling Opportunity Zone Investment

Block 216, a mixed-use skyscraper in Portland, OR, was marketed as a flagship Opportunity Zone project designed to deliver significant tax benefits and returns to investors through the Block 216 QOF, LLC fund. However, recent developments suggest the project is struggling financially, with reports pointing to a potential foreclosure. This news raises serious questions about the viability of the investment and the due diligence conducted by Baker Tilly Capital, LLC, before it was recommended to investors.

Qualified Opportunity Zone funds, like Block 216 QOF, LLC, are private placement offerings intended to spur economic development in distressed areas while offering investors tax deferrals and potential gain exclusions. These investments come with substantial risks, including limited liquidity, long lock-up periods, and economic uncertainties tied to underdeveloped regions. The looming foreclosure threat to Block 216 underscores these risks and highlights potential issues with how the investment was vetted and sold.

Baker Tilly’s Claims Under Scrutiny

In the offering materials for Block 216 QOF, LLC, Baker Tilly Capital, LLC emphasized its “specialization in Opportunity Zone real estate investments” and “unique qualifications” as a trusted advisor. The firm also touted a “rigorous independent due diligence” process, suggesting that investors could rely on their expertise to mitigate risks. Yet, the current financial distress of Block 216 calls into question whether this due diligence was as thorough as promised—or if material risks were inadequately disclosed to investors.

As securities arbitration attorneys, we at Iorio Law PLLC are concerned that Baker Tilly Capital, LLC may have failed to meet its obligations under securities laws. Broker-dealers and investment advisors are required to conduct reasonable due diligence on private placement offerings and ensure recommendations are suitable for their clients. If Baker Tilly misrepresented the stability of Block 216 QOF, LLC or overlooked red flags during its vetting process, investors who suffered losses may have grounds to recover their funds through FINRA arbitration claims.

Upon information and belief, broker Tracey Nguyen was one of the Baker Tilly Capital brokers who sold shares of Block 216 QOF, LLC.

Why Investors Should Act Now

The potential foreclosure of Block 216 is a red flag for anyone who invested in this Opportunity Zone fund through Baker Tilly Capital, LLC. Private placements like Block 216 QOF, LLC are illiquid and complex, often marketed to high-net-worth individuals seeking tax advantages. However, when projects falter, investors can face significant financial losses—losses that might have been avoided with proper disclosure and oversight.

Iorio Law PLLC is actively investigating whether Baker Tilly Capital, LLC:

• Failed to conduct adequate due diligence on Block 216 QOF, LLC.
• Misrepresented the risks or overstated the potential returns of the investment.
• Recommended the fund to investors for whom it was unsuitable, violating FINRA’s suitability rules.

If you invested in Block 216 QOF, LLC, or other Opportunity Zone funds sold by Baker Tilly Capital, LLC, you may be entitled to pursue a securities arbitration claim to recover your losses. Our firm has a proven track record of helping investors nationwide recover millions in damages caused by broker misconduct, with 15 years of experience in FINRA arbitration cases.

Baker Tilly Capital, LLC (CRD No. 115333)

Baker Tilly Capital, LLC is a broker-dealer based in Madison, Wisconsin. Baker Tilly Capital, with eight branch offices and approximately 40 registered representatives, has been a FINRA member since 2001. The brokerage firm is a limited-purpose broker-dealer and offers private placement investment opportunities in real estate and other alternative investments to accredited investors.

In 2023, Baker Tilly Capital was censured and fined by FINRA after the regulator conducted an examination that revealed the firm had permitted material changes to the terms of two related private placement offerings (QOFs) in violation of Exchange Act Rule 10b-9 and FINRA Rule 2010. Specifically, FINRA alleged the following:

• In 2019, Baker Tilly Capital served as the private placement agent for two related private placement offerings in federally designated qualified opportunity zones.
• In March 2019, the original private placement memorandum (PPM) for the offering stated that a closing would not occur until the offering met a minimum contingency of $16 million in investor subscriptions.
• However, the issuer amended the PMM in June 2019 to state that an initial closing of approximately $6 million would take place later that month. The issuer conducted the June closing so that certain investors would not lose the tax benefits of their investment. Because the early closing was a material change to the terms of the offering, Baker Tilly Capital was required to, but did not, terminate the offering and return investor funds at that time.
• Additionally, amendments to the PPM in June and August 2019 provided for the first time that, in addition to investor subscriptions, alternative funding sources obtained by the manager of the offering could count toward the minimum contingency amount. The alternative funding could include deferred developer fees, a construction loan, and other sources not involving investor subscriptions. Again, because this was a material change to the terms of the offering, Baker Tilly Capital was required to, but did not, terminate the offering and return investor funds at that time.
• Ultimately, the issuer conducted a closing in August 2019 with only $10.925 million in investor subscriptions, including $2.95 million raised for the June closing, below the required $16 million minimum contingency.
• Therefore, Respondent willfully violated Exchange Rule 10b-9 and FINRA Rule 2010.

Contact Iorio Law PLLC for a Free Consultation

If you suffered financial losses in Block 216 QOF, LLC, or any other Qualified Opportunity Zone fund sold by Baker Tilly Capital, LLC, we urge you to contact Iorio Law PLLC immediately.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007
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We offer free, confidential consultations to review your investment account and assess your legal options. Our securities arbitration lawyers work on a contingency fee basis—meaning you pay no legal fees unless we recover compensation for you.

Call us toll-free at (855) 430-4010 to speak with attorney August M. Iorio. Time is critical in securities arbitration cases, as statutes of limitations may apply. Don’t wait to protect your rights.

About Iorio Law PLLC

Iorio Law PLLC is a leading securities arbitration law firm based in New York, NY, representing investors across the United States. We specialize in recovering investment losses caused by broker negligence, fraud, or unsuitable recommendations. Our team is committed to holding financial firms accountable and securing justice for our clients.

For updates on our investigation into Baker Tilly Capital, LLC, and the Block 216 QOF, LLC fund, visit our Block 216 Investor Recovery Center. If you’ve been affected by this or similar Opportunity Zone investments, let us help you fight for the compensation you deserve.