10.0David P Neuman
(720) 599-3505




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LPL Financial and Non-traded REITs


Have you lost money investing in non-traded REITs through LPL Financial? We are currently investigating allegations made against LPL Financial, a Boston, Massachusetts-based securities brokerage firm.  The New Hampshire Bureau of Securities Regulation fined LPL Financial $1.2 million for the sales of non-traded REITs (or real estate investment trusts) to New Hampshire investors.  The New Hampshire Bureau of Securities Regulation called these sales “unlawful and unsuitable”.


New Hampshire alleged that LPL Financial sold non-traded REITs to many elderly customers.  Some of these customers had more than 10% of their liquid net worth in non-traded REITs, despite LPL’s internal guidance that did not allow for customers over the age of 70 to have more than 10% of their liquid net worth in non-traded REITs.  New Hampshire alleged that LPL failed to adequately supervise these sales.  According to the allegations, LPL acknowledged in its response to the investigation that at least 10 sales of non-traded REITs since 2007 in NH were unsuitable.


The documents attached to the New Hampshire complaint identified Jeffrey N. Williams as one of the branch managers and financial advisors who recommended these non-traded REITs to New Hampshire investors.  Jeffrey N. Williams worked at an LPL branch in Nashua, New Hampshire.  Some of the non-traded REITs sold to LPL customers include Cole Credit Property Trust III, Behringer Harvard, Inland American, Inland Western, CNL, and many others.


Non-traded REITs like Cole Credit Property Trust or Behringer Harvard are investments in pools of different real estate.  Unlike publicly traded REITs, non-traded REITs are not listed on any public exchange.  Therefore, it is difficult to price non-traded REITs, and it also makes it difficult to sell them if the investor wants to get out.  Moreover, non-traded REITs tend to have excessive fees and commissions, ranging from 10% to over 20% of the principal investment.  This makes non-traded REITs unsuitable for many investors, including elderly or senior investors.


Our attorneys have represented over one thousand investors who have been defrauded by their financial advisor or stockbroker.  While we have offices in Denver and the Seattle area, we have also previously represented clients throughout the country, including investors in New Hampshire.  If you have lost money with LPL Financial in non-traded REITs, and want to hear about ALL legal options, please visit https://www.israelsneuman.com/ and go to our CONTACT page or call us at 720-599-3505.


Click to view:  LPL NH AWC

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.
10.0David P Neuman


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