NEW YORK--(BUSINESS WIRE)-- The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”), www.nasd-law.com, announced today that it filed another claim against LPL Financial to recover damages sustained in Inland Western Real Estate Investment Trust n/k/a Retail Properties of America (NYSE: RPAI) (“Inland Western REIT”). The securities arbitration claim was filed with the Financial Industry Regulatory Authority (“FINRA”), and seeks damages of about $300,000.
According to the claim, the LPL advisor recommended that the Claimant invest 100% of his IRA in Inland Western REIT, representing an unsuitable over-concentration. The Claimant was told that Inland Western REIT would provide a better return, with very low risk. The IRA had been invested in money markets making a small interest return but was safe and secure. The Claimant maintained checking, savings and his IRA account at a local bank in Fort Worth, Texas called Omni Credit Union which through mergers is now known as Omni American Bank. Omni American and LPL have an affiliation agreement whereby securities sold to the bank’s clients are done through a representative of LPL. The LPL advisor had access to the Claimant’s account information from Omni American and contacted the Claimant to invest in the Inland Western REIT with knowledge about his IRA and its contents and value. The Claimant followed the advisor’s advice, and, through dividend reinvestment, eventually owned over $400,000 in the REIT. Unfortunately, the LPL advisor never disclosed that the Inland Western REIT was illiquid and contained substantial risk. As a result, the Claimant sustained substantial losses.
Throughout the country, LPL provides support to over 2,200 advisors at approximately 670 banks and credit unions. We believe that many customers of these banks and credit unions were contacted by LPL representatives who had access to their banking information to solicit them to invest in non-traded REITs. These types of arrangements, where LPL brokers or financial advisors are working independently with bank customers, can be categorized as “satellite offices.” In the securities industry, while regular branch offices require reasonable supervision, a satellite office requires vigilant supervision by the broker-dealer and therefore greater scrutiny is required to ensure compliance with the securities rules and laws.
Investors who purchased Inland Western or other REITs from LPL Financial or other FINRA brokerage firms can contact K&T to explore their legal rights and options. K&T is presently pursing claims on behalf of investors who sustained losses by purchasing REITs including Apple REITs sold by David Lerner Associates, Lightstone, CNL Lifestyles, KBS REIT, AmREIT, Behringer Harvard REITs, Cornerstone Core Properties REIT, and Wells REITs.
If you wish to discuss this announcement or invested $250,000 or more Inland Western or other REITs from LPL Financial or other FINRA brokerage firms, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at www.nasd-law.com
Klayman & Toskes, P.A.
Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire, 888-997-9956
Source: Klayman & Toskes, P.A.