LPL Financial Settles With State Securities Regulators For Sale of Non-Traded REIT’s

by Gray on September 24, 2015

in Uncategorized

On September 24, 2015, LPL Financial (“LPL”) reached a settlement with the North American Securities Administration Association (“NSAA”) to pay a $1.43 million fine for failure to implement an adequate supervisory system and failure to enforce it’s written rules regarding non-traded REITs. The $1.43 million fine will be distributed among 48 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.

15.6.15 money whirlpool

As part of the settlement, LPL also agreed to reimburse investors for losses involving non-traded REITs sold by the firm from January 1, 2008 through December 31, 2008. The total amount to be returned to investors will be determined by a third-party review of approximately 2,000 sales. Some of the REITs LPL sold during the relevant time period include: ACAP Strategic Fund, Eaton Vance Funds, Hines Securities and Inland American REIT.

The settlement was a result of a multi-state investigation led by the NSAA. In addition to failure to enforce an adequate supervisory system, the investigation concluded that LPL agents sold non-traded REITS in excess of the REIT’s prospectus standards, various state concentration limits or LPL’s Alternative Investment Guidelines.
LPL already settled with Massachusetts and Delaware for approximately $2 million for failure to supervise financial advisors who caused clients to hold exchange-traded funds (“ETFs”) for extended periods of time.

If you have suffered significant losses as a result of your investments in REITs or other non-traded investments with LPL Financial or another firm, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a securities arbitration attorney at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or newcases@investorlawyers.net for a no-cost, confidential consultation.

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