Gray Firm Files Arbitrations Against LPL Financial Alleging Unsuitable Sales of Non-Traded REITs -- LPLA

NEW YORK, May 20, 2013 (GLOBE NEWSWIRE) -- Law Office of Christopher J. Gray, P.C., a New York City law firm handling arbitration claims on behalf of investors throughout the United States, has filed multiple Financial Industry Regulatory Authority ("FINRA") arbitration proceedings on behalf of investors who allege that registered representatives of LPL Financial Holdings, Inc.'s (Nasdaq:LPLA) brokerage subsidiary recommended unsuitable investments in non-traded REITs.

Suitability claims arise when stockbrokers or investment advisors recommend investments that are not appropriate for an investor's financial circumstances, risk tolerance, or investment goals. Cases filed by the Gray Firm allege that in certain circumstances, LPL lacked a reasonable basis to recommend certain non-traded REITs, including Inland Western REIT (now known as Retail Properties of America).

Both Montana and Massachusetts have pursued LPL for allegedly selling complicated real estate investment trusts, or non-traded REITs, to unsophisticated investors. William F. Galvin, the Massachusetts secretary of the commonwealth, came to a $2.5 million settlement with LPL in February 2013 arising out of LPL's sales of non-traded REITs to investors in his state. The Massachusetts complaint arose out of $28 million in non-traded REIT sales between 2006 and 2009, which were sold to nearly 600 clients in Massachusetts. According to the Massachusetts Securities Division, 569 of those transactions involved regulatory violations, including violations of prospectus requirements, violations of Massachusetts concentration limits and violations of LPL's compliance practices. Inland American Real Estate Trust Inc. accounted for the largest amount of sales of all the REITs listed in the complaint. Other REITs discussed in the Massachusetts complaint included Cole Credit Property Trust II, Inc., Cole Credit Property Trust III, Inc., Cole Credit Property 1031 Exchange, Wells Real Estate Investment Trust II, Inc., W.P. Carey Corporate Property Associates 17, and Dividend Capital Total Realty.

According to the Massachusetts complaint, the investigation has "revealed significant and widespread problems with LPL's adherence with the product prospectus and (state) requirements."

Attorneys at Law Office of Christopher J. Gray, P.C. are available to review possible cases involving unsuitable sales of non-traded REITs. Investors who believe that a financial advisor or stockbroker may have violated their rights in connection with sales of non-traded REITs or other securities may contact Law Office of Christopher J. Gray, P.C. at (866) 966-9598 or for a confidential, no-obligation consultation.

CONTACT: Law Office of Christopher J. Gray, P.C. (866) 966-9598 newcases@investorlawyers.netSource:Law Office of Christopher J. Gray, P.C.