LPL Financial, LLC is the latest in a constant flow of examples of organizations that have been fined or disciplined as a result of mishandling non-traded REITs and using these sales items to mislead and take advantage of investors.
The Secretary of the Commonweatlh in Massachusetts determined that LPL Financial had failed to monitor its representatives in their attempt to sell non-traded REITs in ways that violated both state and company regulations. The Securities Division also directed charges of dishonest and unethical business practices towards the company. It found that the sales of nearly $28 million in non-traded REITs were distributed among roughly 600 clients over four years, and that an overwhelming majority of those sales had regulatory violations.
As a result of these significant scams, the state of Massachusetts is currently seeking to return any financial losses to investors who were allegedly guided by LPL Financial in ways that violated state and company regulations. An undisclosed administrative fine is also in the process of being directed towards the company.
Of course, financial advisors and broker-dealers have a duty and obligation to carry out appropriate due diligence and thoroughly discuss whether or not a sale is appropriate for a client’s consumption. Non-traded REITs can be especially an especially tricky purchase for investors for several reasons, such as the facts that these sales result in large commissions for stock brokers, that they can have exceedingly high fees, and that they do not allow for long-term liquidity.
If you have had any issues with LPL Financial regarding their sales of non-traded REITs or have experienced similar issues with another company, contact Thomas C. Bradley, an experienced Securities and Stock Fraud Attorney, to see what he can do for you and find out how he can help you regain your financial losses.