Memphis, TN Morgan Keegan & Co. Censured and Fined for ETF Sales Practice Violations

On October 18, 2012, FINRA censured and fined Memphis, Tennessee Morgan Keegan & Co. (CRD# 4161) $365,000 for its failure to “establish and maintain a supervisory system” to achieve compliance with NASD/FINRA rules in connection with the sale of non-rraditional ETFs. According to FINRA’s website, Morgan Keegan provided retail brokerage services and concurrently “failed to…

Utah Senator Howard Stephenson Attacks Online Broker Records

Senator Howard Stephenson, from Utah, is currently targeting publically available internet broker records. Senator Stephenson complains that the “long-reach” of internet search engines “unfairly” reveal and publicize past enforcement investigations regarding investment brokers. He believes that these publically available enforcement investigations are smearing brokers’ reputations. The Utah Securities Commission though has disregard Senator Stephenson’s complaint;…

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…

FINRA Takes Aim At Brokers Selling Reverse Convertible Notes

Investment News reports that Richard Ketcham, FINRA’s chairman and chief executive last week warned an audience of more than 900 industry professionals at the regulator’s annual meeting in Washington that the regulator is focusing on broker-dealers that sell structured products such a reverse convertible notes. This news comes on the heels of our blog post…