LPL to Pay up to $8 Million to NH Investors over Unsuitable NTR Sales
In December 2015, the New Hampshire Bureau of Securities Regulation entered into a consent order with broker-dealer LPL Financial LLC related to the improper sale of non-traded real estate investment trusts to Granite State residents.
The bureau initiated its investigation based on a complaint from an 81-year-old New Hampshire woman who was sold $253,000 in non-traded REIT shares – which was more than the state’s allowable 10 percent concentration limit based on her liquid net worth of $2.5 million.
In addition to monetary penalties and other relief, LPL was required to engage a third-party to review certain LPL non-traded REIT sales to New Hampshire residents to determine which sales violated either LPL guidelines or guidelines established by the non-traded REIT issuer. Any New Hampshire resident whose non-traded REIT purchase through LPL violated these guidelines would be entitled to remediation.
Recently, the third-party completed its review of LPL’s non-traded REIT sales and determined that more than 200 New Hampshire residents are eligible for remediation offers totaling more than $8 million.
In the coming days, eligible individuals will be sent letters outlining the offer and its terms. LPL clients whose accounts were reviewed but were not eligible for remediation will receive an explanatory letter from LPL as well.
