The Securities Arbitration Law Firm Of Klayman & Toskes Files Another Arbitration Claim Against LPL Financial As It Continues To Investigate Claims On Behalf Of Inland Western REIT N/k/a Retail Properties Of America Investors
The Securities Arbitration Law Firm of Klayman & Toskes (“K&T”), www.reitfraudloss.com, 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), LaeRoc 2004-2005 Income Fund, LaeRoc Edge Fund, and LaeRoc 2002 Income Fund. The securities arbitration claim was filed with the Financial Industry Regulatory Authority (“FINRA”), and seeks damages of $338,000.
According to the claim, the Claimant’s LPL advisor recommended that she invest her Trust’s assets into four illiquid, non-traded investments, which included Inland Western and three LaeRoc Funds. The assets in the Trust were supposed to be placed in lower risk products so that the money would be preserved. Unfortunately, the LPL advisor did not adequately explain the risks associated with these products, and inappropriately placed the Trust’s assets at risk by exposing them to speculative investments. To make matters worse, the LPL advisor recommended that the Claimant reinvest the dividends generated by Inland Western, which only exasperated the losses as the share price declined in value.
Last week, LPL agreed to pay up to $2.5 million to settle claims brought by Massachusetts for failure to supervise registered representatives who sold non-traded REITs. The complaint focused on the following seven REITs: 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. Massachusetts found that REIT sales at LPL contained violations, including sales made in violation of the State’s 10% concentration limits, sales made in violation of prospectus requirements, and sales made in violation of LPL compliance practices. Massachusetts also found that LPL representatives received limited training on REITs.
Investors who purchased Inland Western REIT, LaeRoc 2004-2005 Income Fund, LaeRoc Edge Fund, LaeRoc 2002 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.
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