Allegedly Unsuitable Recommendations Caused Senior Investor Loss of Savings
A Brunswick, Georgia retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration case against broker-dealer MML Investors Services, LLC. The investor contends that a broker from the firm overconcentrated his IRA and a non-IRA account in CNL Lifestyle Properties, which is an illiquid, privately traded real estate investment trust (non-traded REIT).
This caused him to lose a large portion of his savings. Now, the investor is alleging failure to supervise, unauthorized transactions, securities fraud, broker negligence, breach of duty, breach of contract, violation of state securities laws, and other claims. He is seeking up to $100K plus interest and costs.
Our Georgia non-traded REIT fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this claimant in recovering the investment losses he suffered. We work with retirees, seniors, and other retail investors throughout the United States in pursuing their FINRA arbitration claims against broker-dealers.
Call us at (800) 259-9010 today.
MML Investors Services Stockbroker Overconcentrated Customer’s Accounts
The MML Investors Services broker who worked with the claimant is a longtime friend who assured him that investing in private placement REITs was a suitable and safe choice. Yet, private placements are typical unregistered securities that should only be offered to accredited, experienced investors who have met a certain financial threshold.
These investments are also highly liquid and very high risk. Typically, they are not a good fit for most retirees and other older conservative investors. Also, there usually isn’t much information available about specific private placements. However, they tend to charge high commissions that go to the brokers recommending them.
One can’t help but wonder, with over 200 publicly-traded REITs found on AMEX or the NYSE, why didn’t the MML Investors broker recommend one of those if real estate exposure was required for this Georgia retiree’s accounts?
Also, the broker-dealer should have been properly supervising the recommendations being made to the claimant, ensuring that not only were they suitable for the investor’s risk tolerance level but also that his accounts were better diversified rather than overconcentrated in one particular investment type.
Instead, this older investor, who entrusted MML Investors Services to properly invest his funds, experienced significant losses to the savings he’d worked a lifetime to accrue.
What is CNL Lifestyle Properties?
This Georgia investor is not the only one to suffer losses in CNL Lifestyle Properties. This non-traded REIT invests in income-producing and specialty properties concentrated in lifestyle-related industries, acquiring and leasing them.
In 2017, CNL Lifestyle Properties announced that it was starting liquidation proceedings. Shares for CNL Lifestyle Properties originally sold for $10/share. Final distributions for shareholders after liquidation was reportedly $2.33/share.
Recover Retirement Losses
It can be devastating to see the money you’ve worked hard to save disappear because a broker-dealer was careless or made recommendations that enriched their own pockets while hurting yours.
Our retirement losses lawyers at SSEK Law Firm have spent decades fighting for investors against even the largest firms on Wall Street. Contact our non-traded REIT law firm to request your free case obligation. We work with investors nationwide. Contact us online or call (800) 259-9010 today.