LPL Financial to Pay Fine, Offer Remediation in Texas Consent Order

By December 2, 2015 September 20th, 2017 News

LPL Financial LLC will pay the state of Texas $110,855 and offer remediation to Texas investors as part of a multi-state settlement regarding LPL’s sales of non-traded Real Estate Investment Trusts (“REITs”).

The Texas State Securities Board (“Texas SSB”) found that “During the time period from January 1, 2008 through December 31, 2013, LPL processed over 2,000 transactions in various jurisdictions that were sold in excess of the REIT’s prospectus standards, various state concentration limits or LPL’s Alternative Investment Guidelines,” as stated in the Consent Decree. The Texas SSB concluded that “LPL failed to implement an adequate supervisory system that was reasonably designed to achieve compliance with applicable securities laws, regarding its sale, through Texas representatives, of non-traded REITs.”

As noted in the Consent Decree, “Non-traded REITs generally carry significant investor risk in that they present liquidity risk and often have lengthy holding periods, restricted redemption options, and variable withdrawal periods determined by issuer specific programs.”

As part of the settlement, LPL will offer to remediate losses for all non-traded REITs that were sold by LPL to its Texas clients from January 1, 2008 through December 31, 2013.

Fishman Haygood represents investors who have suffered investment losses in claims against their brokers or financial advisors. Our experienced attorneys have brought securities fraud cases in state and federal courts across the nation, as well as in FINRA arbitration. We work to help investors recoup their losses.

Of course, all cases are different. For that reason, we analyze each client’s matter individually and provide our personalized evaluation only after considering all of the facts and circumstances of all possible claims. If you or someone you know is the victim of securities fraud, please contact a Fishman Haygood lawyer today.

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