Category: Non-Traded REITs

Non-traded REITS are illiquid investments

Adam Belardino, Ex-MML Investors Services Rep., Named In FINRA Complaint

Adam Belardino, Ex-MML Investors Services Rep., Named In FINRA Complaint

FINRA recently named Adam Belardino of New Rochelle as a Respondent in a Complaint. FINRA alleges that Belardino failed to appear for on-the-record testimony. Belardino was employed at Barnum Financial Group in Elmsford, New York from 2007 to March 2019. During that time, Belardino was a registered representative for MML Investors Services, LLC, which is an affiliate of Massachusetts Mutual Life Insurance Co. He was terminated in March 2019 relating to his firm’s investigation into a customer complaint against him. Adam Belardino & FINRA Complaint The Complaint alleges that FINRA began investigating Belardino’s termination from MML Investors Services in April…

FINRA Fines Independent Financial Group $200,000 for Failure to Supervise Alternative Investment Recommendations

FINRA Fines Independent Financial Group $200,000 for Failure to Supervise Alternative Investment Recommendations

Recently, the Financial Industry Regulatory Authority (FINRA) sanctioned and fined Brokerage Firm, Independent Financial Group (IFG), for the failure to supervise recommended Alternative Investments in Non-traded Real Estate Investment Trusts (REITs) and Structured Notes.  According to FINRA, the Acceptance Waiver and Consent (AWC) agreed to by IFG resulted in a censure, $200,000 fine and required to implement supervisory systems reasonably designed to comply with sales practice rules and regulations related to suitability requirements for alternative investment recommendations. Regulatory Findings According to FINRA investigations, “the representative solicited dozens of customers who were retiring or had retired to liquidate their 401(k) and…

HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes Investigates Investor Losses in Light of Chapter 11 Bankruptcy Filing

HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes Investigates Investor Losses in Light of Chapter 11 Bankruptcy Filing

National investor fraud law firm, KlaymanToskes (“KT”), announces an investigation on behalf of investors in Hospitality Investors Trust (“HIT REIT”), formerly known as American Realty Trust, following the filing for Chapter 11 Bankruptcy Protection in the United States Bankruptcy Court for the District of Delaware (Case No. 21-10831).  Hospitality Investors Trust is classified as a Non-Traded Real Estate Investment Trust (“REIT”) that was touted as offering current income to investors with a conservative to moderate risk tolerance. Non-Traded REITs tend to have high expenses and fees, along with limited liquidity which make this type of investment unsuitable for most investors.…

FINRA Barred, NPB Financial Group Ex-Broker, Cynthia Diane Cowden for Unsuitable Investment Recommendations in Illiquid Non-Traded Securities

FINRA Barred, NPB Financial Group Ex-Broker, Cynthia Diane Cowden for Unsuitable Investment Recommendations in Illiquid Non-Traded Securities

The securities industry watchdog, the Financial Regulatory Industry Authority (“FINRA”) barred, NPB Financial Group’s, Ex-Broker Cynthia Diane Cowden, for Unsuitable Investment Recommendations to a retired couple and an individual senior investor.  The recommended investments at issue were illiquid non-traded REITs and non-traded closed end funds.  According to FINRA, the barred broker’s recommendations resulted in unsuitable, securities concentration in illiquid securities that exceeded concentration limits established by the California State Regulations designed to protect investors. FINRA required that Cynthia Diane Cowden’s investment advice should have had reasonable basis for her recommendations, based on the investor’s “age, other investments, financial situation and…

NOTICE TO LPL FINANCIAL CUSTOMERS WITH REIT INVESTMENTS – KlaymanToskes commences investigation on behalf of Investors Who Sustained REIT Losses in Excess of $100,000

NOTICE TO LPL FINANCIAL CUSTOMERS WITH REIT INVESTMENTS – KlaymanToskes commences investigation on behalf of Investors Who Sustained REIT Losses in Excess of $100,000

KlaymanToskes (“KT”), http://www.klaymantoskes.com, announces an investigation on behalf of LPL Financial (NASDAQ:LPLA) customers who sustained losses from the purchase of Real Estate Investment Trusts (“REITs”).  According to FTSE Russell, the FTSE Nareit US Real Estate Indexes are down between 10.70% and 47.75%, year-to-date, with the Mortgage REITs Index suffering the largest losses.  These losses were precipitated by COVID-19 and uncertainty in the real estate markets.  LPL recently restricted purchases of eleven REITs, both non-traded and publicly traded REITs, due to market instability. Non-Traded REITs Black Creek Industrial REIT Blackstone REIT CIM Income NAV REIT DWS RREEF Property Trust Hines Global…

NOTICE TO UBS CUSTOMERS – KlaymanToskes Announces Investigation into UBS ETRACS ETNs: WTIU, HOML, MLPZ, SMHD, BDCL, HDLV, LBDC, LMLP, MORL, MRRL, and DVHL for Investors that Sustained Losses in Excess of $100,000

NOTICE TO UBS CUSTOMERS – KlaymanToskes Announces Investigation into UBS ETRACS ETNs: WTIU, HOML, MLPZ, SMHD, BDCL, HDLV, LBDC, LMLP, MORL, MRRL, and DVHL for Investors that Sustained Losses in Excess of $100,000

KlaymanToskes (“KT”), www.klaymantoskes.com, announces an investigation into UBS ETRACS ETNs: (NYSE Arca:WTIU, HOML, MLPZ, SMHD, BDCL, HDLV, LBDC, LMLP, MORL, MRRL, and DVHL).  These exchange traded notes (“ETNs”) all suffered significant declines along with the fall of the market due to COVID-19.  These products were created by UBS and may have been marketed and sold to UBS customers who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation and were not explained the potential risks. As of March 24, 2020, UBS announced that it would suspend further sales of the WTIU and…

NOTICE PHILADELPHIA AREA LAW ENFORCEMENT AND FIREFIGHTERS WHO INVESTED WITH AUSTIN RICHARD DUTTON JR. AND NEWBRIDGE SECURITIES: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Continues to Investigate After Multiple FINRA Claims Filed

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, announced today that it is continuing its investigation into Austin Richard Dutton Jr. (“Dutton”) and Newbridge Securities Corporation (“Newbridge”). The Pennsylvania Department of Banking and Securities levied fines against Dutton personally for $200,000 and Newbridge, in a separate action, for $499,000 for misconduct between 2012 and 2016. Dutton is currently registered with Sandlapper Securities, LLC. According to securities attorney Lawrence L. Klayman, Esq., “Newbridge Securities is responsible for adequately supervising its registered representatives.  When brokerage firms fail to adequately supervise their registered representatives, they may be liable for any…

Department of Labor Fiduciary 60-Day Rule Delays Financial Industry Crunch Time

Department of Labor Fiduciary 60-Day Rule Delays Financial Industry Crunch Time

The new Department of Labor (DOL) Fiduciary Rule that was enacted and scheduled to begin this month on April 10th has been postponed 60 days to June 9th.  Brokerage Firms and Financial Advisors are responsible for compliance with the rules as they are now written.  Keeping in mind that the requirements may be modified or eliminated based on the what happens during the 60-day delay. Klayman & Toskes, P.A. is monitoring the developments and will keep investors posted and provide further updates as they become available. Best Interest Contract (BIC) Brokerage firms and financial advisors who recommend investment of retirement funds…

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation into Cetera Advisors Sales Practice Violations Related to Solicited Investments in Non-Traded REITs and BDCs

New York (Globe Newswire) – March 24, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, announces an investigation into Financial Industry Regulatory Authority (FINRA) sales practice violations by Cetera Advisors related to solicited investments in non-traded Real Estate Investment Trusts (“REITs”) and Business Development Companies (“BDCs”).  According to K&T, the scope of the investigation includes whether Cetera Advisors made suitable recommendations related to non-traded REITs and BDCs; whether adequate disclosure was made of the fees, costs and risks of non-traded REITs and BDCs and whether the high commissions paid to Cetera Advisors resulted in conflicts of…

Notice to All United Development Funding IV Investors with Losses in Excess of $250,000 from the Securities Arbitration Law Firm of Klayman & Toskes, P.A.

New York (Globe Newswire) – March 2, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, provides notice to all United Development Funding IV (NASDAQ:UDF) investors with full-service brokerage accounts. Class action lawsuits have been filed against company and its officers only.  Investors with full-service brokerage firms should consider all investment loss recovery options including, claims filed with the Financial Industry Regulatory Authority (“FINRA”) for sales practice violations. According to a study conducted by K&T, investors can expect to recover only a small fraction of their estimated damages through participation in a class action lawsuit. According…

LPL Financial LLC Ordered To Pay Restitution To Investors and Fines To FINRA for Failure To Supervise Sale of Non-Traded REITs, Variable Annuities and Exchange Traded Funds

Financial Industry Regulatory Authority (FINRA) sanctioned LPL Financial, LLC with fines of $10 million for, “broad supervisory failures in a number of key areas, including the sales of non-traditional exchange-traded funds (ETFs), certain variable annuity contracts, non-traded real estate investment trusts (REITs) and other complex products”.  Additionally, FINRA ordered that $1.7 million in restitution be paid to investors by LPL Financial to certain customers who purchased non-traditional ETFs.   FINRA Examination Findings According to FINRA regulators, “LPL’s supervisory breakdowns resulted from a sustained failure to devote sufficient resources to compliance programs integral to numerous aspects of its business.” This lack…