Regulators Fine LPL Financial LLC $950,000 Over Unsuitable Alternative Investments Sales

Thumbnail image for lpl.jpgToday, LPL Financial LLC reached a settlement with the Financial Industry Regulatory Authority (FINRA) over the firm’s failure to adequately supervise the sale of non-traded REITs and other risky alternative investments. LPL’s settlement with FINRA specifically mentioned former LPL broker Gary J. Chackman for his role in selling “dozens” of alternative investments that were unsuitable and exceeded the firm’s guidelines, which he was able to conceal by using false customer financial information. Chackman has been the subject of numerous securities arbitration claims.

Last year, LPL agreed to pay a fine of $500,000 and approximately $2 million in restitution to Massachusetts investors for violating Massachussets suitability rules while selling non-traded REITs, including:

  • Inland American, Cole 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
  • Dividend Capital Total Realty

Related blog posts:

LPL Financial, LLC Under Fire for Sale of Non-Traded REITS

Investors Beware: Non-Listed REITs