LPL Fined $3.6 million for Nontraded REIT Sales

Posted on April 16th, 2015 at 10:57 AM
LPL Fined $3.6 million for Nontraded REIT Sales

From the Desk of Jim Eccleston at Eccleston Law LLC:

New Hampshire securities regulators fined LPL Financial  $3.6 million for allegedly selling unsuitable real estate investments to elderly clients.

According to the New Hampshire Bureau of Securities Regulation, since 2007, LPL has made 48 sales of nontraded real estate investment trusts, totaled approximately $2.4 million.

One of the investors was an 81-year-old New Hampshire resident who invested $253,000 in the nontraded REIT from LPL in January 2008 and subsequently lost a substantial amount on the product, which typically is illiquid and comes with high fees.

A nontraded REIT is considered to be a risky investment for elderly clients.  In the New Hampshire matter, LPL clients held a higher percentage of their portfolios in uncertain alternative investments than what was allowed by LPL's internal rules.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: REIT, New Hampshire, LPL Financial, FINRA, James Eccleston

Return to Archive

TESTIMONIALS

Previous
Next

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

September 29, 2023
Traders Engage in Boom-or-Bust Options in Stock Market

The stock options market is experiencing a surge in activity, as many individual investors are eagerly engaging in trades that expire within hours or days to take advantage of the volatile market swings.

September 28, 2023
Former LPL Affiliate Compliance Chief Suspended by FINRA for Unauthorized $1 Million Transfer

The Financial Industry Regulatory Authority (FINRA) fined and suspended Jeffrey K. Kirkpatrick, a former chief compliance officer at a registered investment advisor previously affiliated with LPL.

September 27, 2023
Former Creative Planning Staff File Lawsuit Challenging Non-Compete Agreements

Four former employees of Creative Planning have filed a lawsuit, alleging that their non-compete agreements with the firm unlawfully restrict their ability to work in the industry.