LPL Financial Agrees to $750,000 Settlement in Nontraded REIT Case
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.