Non-traded REITs have destroyed billions in retiree wealth over the past decade. We watched the industry push these opaque products onto seniors who needed income, not illiquidity. FINRA recently sanctioned broker Andrew Stephen Mogol and his firm for willfully violating Regulation Best Interest by recommending complex products to retail customers without proper supervision.
Mogol and his firm violated Reg BI
FINRA Case #2022074289902 targets conduct that should never have reached a customer statement. Mogol, associated with a FINRA-member firm in Baltimore, Maryland, was assessed a deferred fine of $5,000 and suspended for six months. His firm willfully violated Regulation Best Interest in its recommendations of complex products including non-traded REITs, structured notes, and leveraged ETFs to retail customers between 2022 and 2025.
Regulation Best Interest, enacted in 2020, requires broker-dealers to place the retail customer’s interests ahead of their own when making recommendations. It is a higher standard than the old suitability rule. The firm in this case allegedly failed to establish a supervisory system capable of flagging recommendations that were not in customers’ best interest.
| Detail | Value |
|---|---|
| Broker | Andrew Stephen Mogol |
| CRD Number | 3126881 |
| Location | Baltimore, Maryland |
| Fine | $5,000 deferred |
| Suspension | February 17, 2026 through May 16, 2026 |
| FINRA Case | 2022074289902 |
| Violations | Reg BI violations; non-traded REITs, structured notes, leveraged ETFs |
Why non-traded REITs are dangerous for retirees
Non-traded REITs promise stable income but often deliver hidden fees, illiquidity, and opaque valuations. Investors cannot sell shares on a public exchange. Redemption programs are limited and may be suspended at the sponsor’s discretion. The upfront fees can consume 10 to 15 percent of the initial investment before a single dollar of income is paid.
For retirees living on fixed income, illiquidity is a catastrophic risk. A medical emergency, home repair, or market downturn may force an investor to access capital quickly. Non-traded REITs do not allow that. The money is locked until the sponsor decides to list, merge, or liquidate the vehicle.
Structured notes and leveraged ETFs add further complexity. Structured notes are debt securities tied to derivatives. Leveraged ETFs amplify daily returns and can decay rapidly in volatile markets. Neither product belongs in a conservative retirement account unless the investor fully understands the risks.
Supervisory failures that enabled the abuse
The most troubling aspect of this case is the firm’s supervisory breakdown. Regulation Best Interest explicitly requires firms to establish policies and procedures that identify and prevent conflicts of interest. The firm allegedly failed to implement a supervisory system capable of catching unsuitable recommendations.
This is not a new problem. We have reviewed dozens of FINRA disciplinary actions where firms allowed brokers to sell complex products to elderly clients with minimal oversight. The common thread is a compensation structure that rewards product sales rather than client outcomes. When a firm profits from every non-traded REIT sold, the incentive to supervise conflicts with the incentive to revenue.
What affected investors can do now
Investors who purchased non-traded REITs, structured notes, or leveraged ETFs through Mogol or his firm should review their account statements carefully. Look for front-end loads, ongoing management fees, and any redemption restrictions. Compare the promised yield against the actual total return including fees.
If the recommendations were unsuitable for your age, risk tolerance, or liquidity needs, you may have a claim. FINRA arbitration allows investors to recover losses caused by broker misconduct. The process is faster than court and does not require a jury. Document every statement, every conversation, and every piece of marketing material you received.
Haselkorn & Thibaut fights for investor recovery
Haselkorn & Thibaut is a securities law firm founded by former Wall Street defense attorneys who shifted their practice to represent investors. The firm has recovered over $520 million for clients in securities matters and maintains a 98 percent success rate in resolved nontraded REIT cases. Attorneys are AV Preeminent rated through Martindale-Hubbell, designated as Super Lawyers, and hold a 5.0-star client review average. The firm operates on a contingency basis — no recovery, no fee.
Contact Haselkorn & Thibaut today
Time matters in REIT recovery cases. The earlier you act, the stronger your position. The firm offers a free case evaluation to assess your losses, review your account history, and explain your options under arbitration or settlement.
- Main Phone: 1-888-885-7162
- Visit our website for a free consultation
Offices in Florida, New York, Arizona, Texas, and North Carolina. Former Wall Street defense attorneys with 95+ years of combined experience. No recovery, no fee.
