An investment fraud law firm announced that FINRA Arbitration lawsuit is filed today. Cetera Advisors has been in the news in the past for the selling of REITs. Cetera has also been in the news recently for the sale of GPB Capital which was raided by the FBI and is under investigations.
The FINRA claim, which was submitted on behalf of New Ulm couple, Minnesota, alleges claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
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Cetera is one of the largest independent broker dealers and is headquartered in EL Segundo, California. According to FINRA BrokerCheck, Cetera Advisors have 30 disclosures. Many of the fines and were over 6 figures. An example is:
“THE FIRM WAS CENSURED, FINED $750,000, AND REQUIRED TO CONDUCT UNDERTAKINGS. THE FIRM WAS REQUIRED TO REVIEW AND REVISE, AS NECESSARY, THE FIRM’S SYSTEMS, POLICIES AND PROCEDURES(WRITTEN AND OTHERWISE) AND TRAINING WITH RESPECT TO THE AREAS DESCRIBED WITHIN SECTION I.A OF THIS AWC. WITHIN 90 BUSINESS DAYS OF THE DATE THIS AWC IS ACCEPTED, THE FIRM SHALL CERTIFY INWRITING TO FINRA THAT WITH RESPECT TO THE AREAS DESCRIBED INSECTION I.A. OF THIS AWC: (I) THE FIRM HAS ENGAGED IN THE REVIEW;AND (II) AS OF THE DATE OF THE CERTIFICATION, THE FIRM HAS ESTABLISHED AND IMPLEMENTED SYSTEMS AND POLICIES AND PROCEDURES (WRITTEN OR OTHERWISE) THAT ARE REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH THE APPLICABLE FINRA ANDNASD RULES CITED IN THE AWC. THE FIRM, WITHIN 120 DAYS OF THE DATE THIS AWC IS ACCEPTED BY FINRA, THE FIRM IS ORDERED TOPROVIDE PAYMENT TO ITS CUSTOMERS WHO PURCHASED FROM THE FIRM’S REGISTERED REPRESENTATIVE L-SHARE CONTRACTS WITH LONG-TERM INCOME RIDERS AND NO PERSISTENCY CREDITS FROM NOVEMBER1, 2011 THROUGH OCTOBER 30, 2016 AND WHO CURRENTLY HOLD THOSE CONTRACTS AT ANY AFFILIATE OF THE FIRM (THE “RESTITUTION VA CONTRACTS”), ACCORDING TO A PLAN NOT UNACCEPTABLE TO FINRA IN AN AMOUNT THAT WILL TOTAL NOT LESS THAN $4.5 MILLION.”
REIT | GPB Capital Lawsuit
The claim also alleges that both firms invested clients unsuitable in the following high-risk private placements and in non-traded REITs:
Cetera Network Consultants
ARC Healthcare Trust I
ARC II Healthcare Trust
REIT CIS 18 World
WP Carey-Global 18
ARC Trust IV
Cole Revenue Trust
Cole Trust Property Trust IV (CPPT IV)
Triad Consultants LLC
Cole Office and Industrial REIT
FINRA claim seeks damages between $100,000 and $500,000.
It is alleged that both the Cetera Consultants Network and Triad LLC Consultants were unsuccessful in carrying out the due diligence of these investments before being recommended to those investors.
Brokerage firms are required to supervise their financial advisers to ensure they are complying with FINRA rules. If the adviser can be found to have breached the FINRA rules and the employers have failed to supervise it adequately, these firms can be held responsible for any losses arising from the FINRA arbitration claim.
Before an investment is proposed, a brokerage dealer has a duty to adequately disclose the risks associated with the investment and to take the necessary diligence to determine whether the investment is suitable for the investor.
FINRA Dispute Resolution is an arbitration center for investors who have claims against their brokerage firm or financial professional. It allows investors to try to repay their investment losses without filing such claims in court.
Haselkorn & Thibaut, P.A. is a law firm that specializes in investment fraud matters and FINRA arbitrations nationwide. They represent both individual and institutional investors seeking to aggressively pursue their claims and maximize their recovery of investment losses for victims of negligence or investment fraud. As former securities industry defense attorneys, they are an experienced group of lawyers that have moved from their side, to YOUR side and they are available to assist you today.
For more information Haselkorn & Thibaut and the law filed against Network Consultants Cetera and Triad Advisors LLC, contact the firm at +1 888-628-5590 or visit www.InvestmentFraudLawyers.com.