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.
"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.
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 (614) 532-4576 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.