Meyer Wilson launched an investigation into the sales practices of LPL
Financial, LLC regarding its recommendation of non-traded real estate
investment trusts to clients based on complaints. The investigation comes
just days after the
Commonwealth of Massachusetts Securities Division sued LPL Financial, LLC over similar practices.
According to the Massachusetts Complaint, LPL Financial representatives
sold $28 million worth of
non-traded REITs (Real Estate Investment Trusts) to nearly 600 clients over a three-year period. Five hundred and sixty-nine
of those transactions allegedly violated either state or company regulations.
The Complaint charges LPL Financial with engaging in dishonest and unethical
business practices and a failure to supervise the registered representatives
who sold the products.
"Many individual investors may have been given misleading information
regarding Non-traded REITS and they should consider contacting an attorney
experienced in this area to determine if they have a legal claim to recover
money," said securities arbitration attorney David Meyer.
Non-traded real estate investment trusts are highly illiquid. Investors who purchase the products face these
liquidity issues associated with REITs and often "lock up" their investments – sometimes unwittingly
– for eight or more years. Early redemption of shares also is very
limited, and the high commissions and fees generally associated with the
products often erode total return. For these reasons, FINRA and other
regulators believe the products are too risky for the average investor.
Despite these facts, representatives at companies like LPL Financial may
be continuing to recommend and sell these products to average investors.
The Massachusetts Complaint focused on seven specific non-traded REITs
sold by LPL:
- Inland American Real Estate Trust Inc., the largest non-traded REIT in
- Cole Credit Property Trust II, Inc.;
- Cole Credit Property Trust III, Inc.;
- Cole Credit Property 1031 Exchange;
- Dividend Capital Total Realty;
Real Estate Investment Trust II, Inc.; and
- W.P. Carey Corporate Property Associates 17.
We are investigating these complaints and other non-traded REITs. If you
purchased a non-traded REIT from LPL Financial or another brokerage firm,
please contact one of our attorneys today. Call us at (888) 390-6491 or
complete the online form at the top of this page and we will respond within 24 hours.
About our law firm:
Meyer Wilson represents individuals across the country who have been harmed
by investment fraud. All of our cases are handled on a contingency fee
basis and we never request a retainer of any kind. Contact us for more
information or complete the
case evaluation online form.