The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”),
, announced today that it filed a claim against LPL Financial (“LPL”) to recover damages sustained in Inland Western REIT n/k/a Retail Properties of America (NYSE: RPAI), Inland America REIT, Dividend Capital Trust, and LaeRoc 2004-2005 Income Fund. The securities arbitration claim was filed with the Financial Industry Regulatory Authority (“FINRA”), and seeks damages of $225,000.
According to the claim, Claimants’ LPL advisor represented that these products were low risk, conservative investments. With regard to Inland Western REIT specifically, the advisor stated that it was a product that had “‘Meat & Potato’ Recession Resistant Tenants.” He guaranteed that investors who redeem after one year “will always come away with a profit,” that the income from Inland Western was “predictable,” and that there had been “no investor Losses, ever...” Moreover, the LPL advisor placed the accounts’ assets at significant risk by over-concentrating them in these speculative investments, and failed to disclose the true risks associated with these products.
Last month, the Massachusetts Securities Division filed a Complaint against LPL for failure to supervise registered representatives who sold non-traded REITs in violation of both state limitations and the company’s rules. Further, LPL was charged with dishonest and unethical business practices. Massachusetts focused on the following non-traded REIT products that were approved for sale by LPL: Inland American, Cole Credit Property Trust, II, Cole Credit Property Trust, III, Cole Credit Property 1031 Exchange, Wells REIT II, W.P. Carey Corporate Property Associates 17 and Dividend Capital Total Realty.
Investors who purchased Inland America REIT, Dividend Capital Trust, LaeRoc 2004-2005 Income Fund or other direct investments from LPL or other brokerage firms can contact K&T to explore their legal rights and options. K&T is presently pursuing claims on behalf of investors from across the country who sustained losses by purchasing these types of products.