HOUSTON, May 22, 2013 (GLOBE NEWSWIRE) -- Lawyers with the Securities Law Firm Shepherd Smith Edwards & Kantas LLP (www.reitlosses.com) are investigating claims of investors who purchased Real Estate Investment Trusts ("REITs") from Ameriprise Financial Services, Inc., Commonwealth Financial Network, Royal Alliance Associates, Inc., Securities America, Inc., Lincoln Financial Advisors Corp., and LPL Financial LLC or any other brokerage or investment advisory firm.
REITs have become popular investment vehicles for brokers and investment advisors to recommend, particularly for income seeking clients or those who are already retired. However, many brokerage firms have failed to meet their legal obligations with regards to their solicitation and sales practices in connection with REITs.
Recently, the Massachusetts Securities Division has investigated and settled allegations against several major, independent broker-dealers as a result of the sales practices and supervision of REITs. Specifically, the Massachusetts Secretary of the Commonwealth investigated Ameriprise Financial Services, Inc., Commonwealth Financial Network, Royal Alliance Associates, Inc., Securities America, Inc., Lincoln Financial Advisors Corp., and LPL Financial LLC. The investigation determined that there was a pattern of impropriety by these firms in the solicitation and sale of REITs. As a result, the Securities Division has required these firms to pay collectively almost $11 million in restitution to Massachusetts investors and an additional almost $1.5 million in fines.
This is very good news for Massachusetts investors, as many of them will see some recovery for money that they lost due to these inappropriate investments. However, investors in other states are still on their own to try to recover money they lost from a recommendation to invest in REITs and even Massachusetts investors will likely need further representation as the settlement will only pay them pennies on the dollar of their losses.
Many brokers or investment advisors who recommend REITs to their clients do not disclose the multitude of risks inherent in this type of investment, as the Massachusetts Securities Division found. If you have lost money in REITs, whether they were traded or non-traded, as a result of your broker or investment advisor's recommendation, contact the law offices of Shepherd Smith Edwards & Kantas LLP for information about a potential claim to recover some or all of your loss.
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and others with more than 100 years of combined experience in the securities industry and in securities law. Since 1990, we have represented thousands of investors nationwide to recover losses. The firm has represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. Collectively, we have represented clients in more than 1,000 matters in negotiation, mediation, arbitration and litigation.