LPL Financial—Unsuitable REIT Sales

investment fraud lawyersLPL 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.

Alan Rosca (1225 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.