SSEK Law Firm Investigates Ex-LPL Financial Broker Beliveau Bays For Unsuitable Non-traded REIT Recommendations

Former Texas Stockbroker is Named in Two Pending Customer Disputes 

Our Dallas non-traded real estate investment trust (non-traded REIT) fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are investigating claims of customer losses involving former LPL Financial registered representative, Beliveau Bays. The ex-Plano, Texas financial advisor is also the subject of pending customer disputes.

Call (214) 613-5306 to speak with one of our Dallas non-traded REIT fraud attorneys today if you are someone who worked with former LPL broker, Beliveau Bays. For elsewhere in the United States, you can reach SSEK Law Firm at (800) 259-9010

Bays May Have Negligently Handled Customers Accounts 

Beliveau Bays was a registered broker and investment advisor who worked in the industry for eight years. Before LPL Financial, he was a Woodbury Financial Services broker. Previous to Woodbury he was with Merrill Lynch, Pierce, Fenner and Smith. 

Among the allegations made against Bays is that he may have sold non-traded REITs, even when they were unsuitable for customers, and negligently handled their accounts including in the way he set up certain investors’ profiles. Ensuring the accuracy of someone’s investing profile is very important:

  • Is the individual a retail investor or a high-net-worth investor?
  • Is this person an inexperienced investor or a sophisticated investor?
  • What is their risk tolerance level?
  • What are their investment goals?

All of these answers help to determine what kinds of investments are suitable for a customer and which ones should not be recommended to them.  

Bay’s BrokerCheck record notes several disclosures including at least one customer dispute in which the claimant contends that he affixed her signature to an account application. Two other cases brought in 2020, both non-traded REIT claims alleging misrepresentations and unsuitability, were denied. 

LPL Financial terminated Bays as a broker in February 2021 after finding that he made misrepresentations to the Financial Industry Regulatory Authority (FINRA) about his submission of life insurance applications for assistants who were not licensed. 

Merrill discharged Bays in 2016 for conduct that purportedly included exercising discretion in a non-discretionary account and talking about an annuity purchase with unauthorized family members.

What Are Non-Traded REITs? 

Non-traded real estate investment trusts are long-term investments. Although they can give retail investors access to real estate investments with tax benefits that they may not be able to avail of otherwise, non-traded REITs are not suitable for every investor. 

They can be highly illiquid and may charge high front-end fees of up to 15%. Early redemptions may lead to additional high fees and a reduction of the total return. Any distributions from non-traded REITs can be suspended at any time at the discretion of board members. 

It is important that your broker only markets non-traded REITs to you if they are suitable for your portfolio, investment objectives, and the degree of risk you can handle. Your financial advisor also needs to make the necessary disclosures to you, refrain from misrepresentations and omissions, and ensure that you understand the nature of these investments and what they involve. 

Skilled Texas Non-Traded REIT Fraud Attorneys 

Please contact our Dallas, Texas non-traded REIT fraud lawyers at SSEK Law Firm if you suffered losses while working with former LPL broker Beliveau Bays or any other Texas financial adviser. 

We have worked with thousands of investors who have been unsuitably sold investments that didn’t align with their investing experience or portfolio goals. Our experienced investment fraud lawyers offer a free case consultation to discuss your losses. Our firm works on a no recovery, no fee basis. 

Contact us today via our online form or by calling (214) 613-5306.

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