Meyer Wilson is investigating allegations that Illinois-based broker Darryl Ferguson recommended unsuitable, non-traded Real Estate Investment Trusts (REITs). Ferguson currently works for LPL Financial LLC. From 2007 to 2018, he was registered with Cetera Advisor Networks.
Ferguson is the subject of a $500,000 pending customer dispute, alleging that he recommended unsuitable, non-traded real estate investment trusts (REITs) to his customers.
Non-traded REITs are illiquid, highly risky, and not suitable for most investors. Promoters of non-traded REITs say they offer a sizeable annual return from rental income and that after 7-10 years, property can be sold and investors can get their money back. Unfortunately, that isn’t always the case. The downside to non-traded REITs is well-known in the securities industry – they carry high fees, valuation problems, limited diversification, and limited liquidity. Brokers and investment advisers can rarely justify recommendations to purchase non-traded REITs.
Even if a client desires diversification into the real estate sector, client interests are far better served by investing in lower cost liquid funds managed by individuals with expertise and incentives to construct diversified portfolios with real estate investments. Many brokers and advisers who recommend non-traded REITs to retail investors usually do so because of the large selling commissions they earn.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Brokers have a duty to recommend investments that are in the best interests of their clients. If you suffered financial losses due to the unsuitable recommendations of Darryl Ferguson, the experienced attorneys at Meyer Wilson would like to speak with you. Contact us today for a no-cost consultation to discuss your legal options.
Recovering Losses Caused by Investment Misconduct.