SERVING CLIENTS NATIONWIDE

New Hampshire Regulator Seeks $3.6 Million from LPL for Unsuitable REIT Sales to Elderly Clients

The New Hampshire Bureau of Securities filed an action Monday ordering LPL Financial to cease and desist activities in violation of state security regulations related to the alleged unsuitable sales of non-traded real estate investment trusts (REITs), namely to elderly clients.

New Hampshire Order #C-2013-000005

According to InvestmentNews, the case began with an 81-year-old LPL customer who lost a substantial amount of money on non-traded REITs purchased from the firm. The report states that in total, the elderly client purchased 48 REITs, totaling $2.4 million, which resulted in "concentration that blatantly exceeded LPL guidelines."

The New Hampshire action follows a series of orders and settlements in nearby Massachusetts, whose regulatory staff in 2013 ordered LPL Financial to pay over $2 million in restitution to customers the commonwealth claimed were victims of improper sales practices and violations of both firm and state liquidity and suitability guidelines.

If you have invested in non-traded REIT products purchased from LPL Financial at concentration levels in excess of firm or industry ules and regulations, and such violation of compliance standards has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.

Categories