Securities Lawyers Blog
Advisor Steven Case (Case), currently employed by LPL Financial LLC (LPL Financial) has been subject to at least two customer complaints during the course of his career. According to a BrokerCheck report some of the customer complaints concerns alternative investments such as direct participation products (DPPs) like non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. The attorneys at Gana Weinstein LLP have witnessed a spike in clients needing representations concerning these alternative investment programs that produce profits only for broker-dealers at the expense of their clients.
In May 2019 a customer complained that Case violated the securities laws by alleging poor investment advice concerning the purchase of three alternative investment products. The is currently pending.
In October 2012 a customer complained that Case violated the securities laws by alleging that Case made unsuitable investment recommendations in non-traded REITs. The claim was settled by the firm for $20,000.
DDPs include products such as non-traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments. These alternative investments virtually never profit investors and are almost always unsuitable for investors because of their high fee and cost structure. Brokers selling these products are paid additional commission in order to hype these inferior quality investments providing a perverse incentives to create an artificial market for the investments. Continue Reading