SII Investments Brokerage Firm to Pay Investors for Non-Traded REIT Sales

Massachusetts Secretary of the Commonwealth William Galvin has ordered SII Investments Inc. to pay the money back to clients who bought non-traded real estate investment trusts (REITs) from the independent broker-dealer.

Last year, Galvin’s office charged SII Investments with failure to supervise sales of non-traded REITs and dishonest or unethical conduct. Under the order, the broker-dealer will offer clients their money back. As part of the settlement, SII will also pay a $50,000 fine.

Many non-traded REITs paid large commissions, causing some brokers to recommend the investment regardless of whether the investments were suitable for the investors.  A broker placing their own financial interest ahead of their clients’ best interests is one of the more common forms of broker misconduct that we see.

SII Investments Policies Resulted in Thousands of Sales

According to Massachusetts’ regulator, SII’s policies and procedures allowed brokers to count clients' annuities as liquid rather than non-liquid assets. This allowed SII brokers to miscalculate a customer’s liquid net worth in order to sell thousands of dollars of high-commission non-traded REITs to clients.

Galvin Goes After REIT Sales

In recent years, Galvin’s office has targeted brokers’ and brokerage firms’ abusive sales of REITs. In 2013, five broker-dealers agreed to pay about $17 million in restitution to clients who sold non-traded REITs, dating from 2005 to the present. In the same year, LPL also was ordered to pay $2 million in restitution to clients who bought non-traded REITs.

SII Investments Purchased by LPL

Last year, LPL bought SII Investments as part of its National Planning Holdings purchase, a network of four broker-dealers owned by insurance company Jackson National.

The deal was structured as an asset purchase, meaning LPL acquired the right to recruit advisers from the NPH broker-dealer network but any historical liabilities of those broker-dealers remained the responsibility of NPH.

Have You Lost Money as a result of SII Investments?

If you lost money investing with SII Investments or think you may be the victim of stockbroker misconduct, contact an experienced investment fraud attorney today.

Speak with an Investment Fraud Attorney Today

Our AV-rated* lawyers have extensive experience litigating a broad range of investment disputes and we will aggressively pursue claims to recover your investment losses. We’ve recovered more than $100 million in assets lost to investment fraud and stockbroker misconduct.

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. represent individual and institutional investors who have lost money as a result of investment fraud or stockbroker misconduct.

Contact Dimond Kaplan & Rothstein

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. to schedule an appointment for a FREE case evaluation.

Our offices are located in Los AngelesNew YorkDetroit, West Palm Beach and Miami, and we represent clients nationwide. Translations services are available.

Share This Story

Share your experience with investment fraud, and contribute to a community dedicated to protection and empowerment. Together, we can unveil strategies, share insights, and build a shield against financial deceit.

Let’s Discuss Your Case Today

When fighting for your rights, you may go up against some dangerous enemies. You want an attorney flying by your side to help navigate you through the twists and turns of the legal system. 

I Want To...
No Recovery, No Fees (888) 578-6255

Subscribe to our email!

Subscribe to our email!

Subscribe to our email!

uploadmagnifiercross linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram