Reuters is reporting that a securities arbitration panel ruled that “Securian Financial Services Inc must pay an investor $2.4 million for failed investments in real estate limited partnerships…” The investor, Mr. Taylor, who brought a securities fraud claim before a Financial Industry Regulatory Authority (FINRA) arbitration panel alleged that Securian “misrepresented the real estate investments as being safe” and also that “the firm failed to supervise its broker.” A spokesperson for Securian said, “We disagree with the allegations made by Mr. Taylor, and are disappointed by the panel’s conclusion…”
It has been reported that the Securian’s advisor sold the real estate investments through a business outside the firm. The customer contended that he believed that the investment was sold through and approved by Securian Financial Services. This type of outside selling by advisors is known as “selling away” and is an ongoing concern for investment firms. As Reuters notes, “Brokerages can also be liable for harm caused to investors who are not informed that the broker’s activities are separate from the firm.”
Securian’s “adviser recommended [to the investor] buying $4.2 million in promissory notes for investments in real estate limited liability companies” in 2003. By the end of 2006, “the notes became worthless.” The lawyer for the client asked the FINRA panel “for full reimbursement” of the investments, but the panel awarded the investor $2.4 million plus interest on that amount as well as some fees.
If you invested in failed real estate partnerships with Securian Financial Services or another FINRA registered brokerage firm and would like to speak to a securities attorney about your potential to recover investment losses please call our Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.