In the case brought by the New Hampshire Bureau of Securities Regulation
involving the sale of non-traded real estate investment trusts (“REITs”)
to an 81-year old, New Hampshire investor, LPL Financial has agreed to
pay a settlement of $750,000.
LPL Financial, considered the nation’s largest independent broker,
allegedly sold the investor an unsuitable non-traded REIT in 2008. LPL
did not admit to the charges, but they did agree to pay $250,000 to the
bureau, $250,000 in administrative fees, and $250,000 to the investor
education fund for a total of $750,000.
According to the Bureau, LPL could avoid these unsuitable and unlawful
sales by taking appropriate data from the customer to assess the risk
tolerance and suitability of the investments. In addition to the $750,000
in fines, LPL has agreed to offer remediation to any New Hampshire client
who was sold a non-traded REIT since 2007 if the sale exceeded LPL's
guidelines or product-specific restrictions.
If you were sold a nontraded REIT by your broker, call today to discuss
your situation with our securities fraud attorneys at Meyer Wilson. We offer
free consultations so we can analyze the details of your case and determine if you have a claim.