LPL Financial—Unsuitable REIT Sales
LPL Financial Sanctioned for Allegedly Recommending Unsuitable REITs to Elderly Clients in New Hampshire
LPL Financial allegedly made unsuitable sales of real estate investments to elderly clients, including an 81-year-old investor who lost a substantial amount on the product, according to reports from New Hampshire.
The aforementioned octogenarian reportedly bought a nontraded REIT from LPL in January 2008 and subsequently lost a large amount on the product, which usually is illiquid and comes with high fees, according to actions filed in court in New Hampshire.
New Hampshire authorities reportedly stated that the sales were “unsuitable and unlawful” and that LPL failed to properly supervise its agents.
New Hampshire Requesting LPL to Pay $3.6M over Nontraded REIT Sales
New Hampshire securities regulators are asking that LPL Financial cough up $3.6 million in fines and repayments to investors for allegedly unsuitable sales of real estate investments to elderly clients, according to reports from New Hampshire.
The New Hampshire Bureau of Securities Regulation is looking for $2.4 million from LPL in buybacks and restitution for clients in 48 sales of nontraded real estate investment trusts that date back to 2007, court reports from New Hampshire state, and it is also imposing a $1 million fine and asking LPL to pay $200,000 in investigative costs.
The aforementioned client invested $253,000 in the REIT and had a liquid net worth of $2.5 million. New Hampshire securities regulators said that investment led elderly clients to hold a higher percentage of their portfolios in risky alternative investments than is allowed by LPL’s internal rules.
The Peiffer Rosca Wolf Investor Rights Attorneys Investigating
The Peiffer Rosca Wolf investor rights attorneys often represent investors who lose money as a result of Ponzi schemes. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment-related misconduct or Ponzi schemes may contact the investor rights attorneys at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.