Rex Securities Law Notice to Purchasers of Real Estate Investment Trusts (REITs) From LPL Financial
December 18, 2012 Business News(PRLEAP.COM) December 18, 2012 - Rex Securities Law, a national securities law firm located in Boca Raton, FL, is investigating LPL Financial on behalf of investors who purchased non-exchange traded real estate investment trusts (REITs) from LPL Financial. Our investigation indicates that some investors were sold non exchange traded REITs with the belief that they would receive regular distributions of income and that the value of the investment would not decline. Our clients did not understand that due to the fact these investments are not traded on any conventional exchange, it may be difficult or impossible to liquidate the investments if cash is needed.
On December 12, 2012, William Galvin, the head securities regulator for Massachusetts charged LPL Financial, LLC of San Diego with a failure to supervise brokers who sold non-exchange traded real estate investment trusts (REITs) in violation of state limitations and company rules. Massachusetts also charged LPL with dishonest and unethical business practices.
The Massachusetts charges are the result of the sale of nontraded REITs during 2006 to 2009. Of some 600 sales examined, the Securities Division found that 569 had regulatory violations including violations of concentration limits, sales made in violation of prospectus requirements and sales in violation of LPL compliance rules. With more than 13,000 brokers nationwide, LPL is one of the largest sellers of non-traded REITs.
Here is a link to the 34 page complaint on the Massachusetts Securities Division website.
They are focusing on seven non-traded REITs sold by LPL:
Non-exchange traded REITs are not traded on any conventional exchange making liquidation when cash is needed, very difficult. Many of the REITs are down 40-50% or more in value since when they were purchased. FINRA has been concerned about these investments for some time as we previously have written.
We have addressed the fact that many retirees were sold these REITs with the promise of steady, dependable distributions of income and with the belief that the value would remain constant or increase. Most did not understand that due to the fact they are not traded, there essentially is little or no market if the investor wishes to liquidate.
If you purchased nontraded REITs based upon alleged misrepresentations you may be able to recover some or all of your losses.
Robert H. Rex, Esq. been helping investors recover investment losses for over twenty years. We represent clients nationwide. Contact us for a no cost consultation.