Former Jefferies & Co. Executive Charged with Defrauding Investors

On January 28, 2013, the SEC charged Jesse Litvak, a former executive of Jefferies & Co. a New York based broker-dealer, with defrauding investors in a mortgage-backed securities (MBS) investment scheme. According to the SEC’s complaint, Litvak allegedly purchased MBS investments from some customers of Jefferies & Co. and subsequently sold the investments to other…

FINRA’s 2013 Focus Areas

On January 11, 2013, FINRA released its regulations and priorities examination letter. This annual letter serves as a notice to the industry on what FINRA will be focusing on in the coming year and what it sees as heighten risk areas. According to FINRA’s letter, “FINRA is particularly concerned about sales practice abuses, yield-chasing behaviors,…

Who is Inland American Real Estate Trust, Inc.?

In the recent Massachusetts Securities Division suit against LPL Financial over non-traded REITs, Inland American Real Estate Trust was targeted. So who exactly is Inland American? In short, Inland American is the industry’s largest non-traded real estate investment trust. According to their website, Inland American Real Estate Trust, Inc. is a publicly traded Maryland corporation…

Massachusetts sues LPL Financial Over Non-Traded REITs

On December 12, 2012 the Massachusetts Securities Division filed suit against LPL Financial, LLC regarding the sale of non-traded REITs. Massachusetts specifically targeted LPL’s sale of Inland American Real Estate Trust. According to the complaint, LPL received at least $1,403,477.40 in commissions from sales of Inland American’s non-traded REITs. According to a recent article in…

Will FINRA’s Complaint Against David Lerner Cause Apple REIT To Deny Redemption Requests By Investors?

Last week, FINRA’s complaint filed against David Lerner & Associates triggered a storm of media attention scrutinizing the brokerage firm’s alleged sales practices violations related to its distribution of Apple REITs investments. The FINRA complaint also exposed that the $11 price per share of all Apple REITs offered are overvalued and that each REIT has…