Published On: December 18, 2015

On Wednesday, LPL agreed to pay $750,000 to settle charges related to the sale of nontraded real estate investment trusts (REITs) to an 81-year-old investor in New Hampshire. The state claims that the sale of the REITs was unsuitable and unlawful. The Bureau of Securities Regulation says the broker-dealer sold unsupervised nontraded REITs to the investor and this resulted in losses that were significant. For this, LPL was fined $750,000. Nontraded REITs can be very risky investments and are not suitable for every investor. When recommending a security, the broker must take into account the customer’s age, net worth, investment portfolio and investment objectives. If he does not, his brokerage firm can be held liable for investment losses, as they had a duty to reasonably supervise him while he was employed there. LPL settled a $1.43 million multi-state case brought by the North American Securities Administrators Association for certain nontraded REIT sales and inadequate supervision of the transactions. The firm also agreed to pay $1.8 million in fines to Massachusetts and $200,000 in fines to Delaware for unsuitable sales of leveraged exchange-traded funds. Finally, in May, the Financial Industry Regulatory Authority (FINRA) ordered LPL to pay $11.7 million in fines and restitution for “widespread supervisory failures” related to the sale of its products.

Disclaimer

The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.

Chicago Investment Fraud Attorneys Offering Nationwide Representation to Investors

If you have suffered financial losses because of the negligence or fraud of your financial advisor or broker through unsuitable investment recommendations, over-concentration, churning, misrepresenting risks, conversion or selling away, you have legal rights and options to pursue recovery of those losses.

Stoltman Law Securities and Investment Fraud Attorneys