LPL Financial Lawsuit Filed Over REIT Sales

Soreide Law Group, based in South Florida, has filed a FINRA arbitration on behalf of their client (Claimant) against, LPL FINANCIAL LLC (Respondent). 
The Claimant, who resides in Florida, maintained an investment relationship with LPL FINANCIAL and their Financial Advisor, SAMUEL IZAGUIRRE (CRD#: 4835113). The lawsuit alleges that the Claimant advised the Respondent that he did not want to take unnecessary risks with his retirement savings. Allegedly, the Respondent solicited the Claimant to invest his IRA in the Northstar Healthcare REIT.
The lawsuit alleges that LPL FINANCIAL and their financial advisor failed to adequately advise the Claimant of the risk of this recommendation, and the high commissions the Respondent received for selling the REIT. The lawsuit alleges that the Respondent sold REITs to many clients. Unfortunately, Northstar Healthcare REIT has traded down from $10 per share to $2.50. SAMUEL IZAGUIRRE is not named in the lawsuit.
The lawsuit alleges that the Claimant has suffered significant damages in these investments with principal losses of at least $93,000 during a time when the financial markets have enjoyed record returns. LPL FINANCIAL actions in this case, the lawsuit alleges, constitutes: negligence, breach of fiduciary duty, negligent supervision, breach of contract, and violation of FINRA rules.
Non-traded REITs, are illiquid investments with substantial risks. FINRA reminds members offering Non-Conventional Investments such as REITs and other alternatives of their obligations to:
(1) conduct adequate due diligence to understand the features of the product;
(2) perform a reasonable-basis suitability analysis;
(3) perform customer-specific suitability analysis in connection with any recommended transactions;
(4) provide a balanced disclosure of both the risks and rewards associated with the particular product, especially when selling to retail investors;
(5) implement appropriate internal controls; and
(6) train registered persons regarding the features, risks, and suitability of these products.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, SAMUEL IZAGUIRRE has 2 Disclosures on his report, both Disclosures are Customer Disputes. One Dispute was settled in 2010, and the other, filed in 2018, alleged, “Customer alleges that in 2018 advisor failed to inform her of an upcoming merger of her non-traded Real Estate Investment Trust and then subsequently sold shares of the merged entity without obtaining her authorization,” is currently pending. The damage amount requested is $100,000.
Izaguirre has been in the securities industry for 14 years and listed with the following firm since 2/1/2011:
LPL FINANCIAL LLC
6625 MIAMI LAKES DR STE 381
MIAMI LAKES, FL 33014-2702 
If you’ve experienced losses, in particular REIT losses, due to the recommendations of LPL FINANCIAL LLC and/or their financial advisor, SAMUEL IZAGUIRRE of Miami Lakes, Florida, contact Soreide Law Group, conveniently located in South Florida, and speak to an experienced securities lawyer at no cost to you regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA.  We operate on a contingency fee basis—no fee if no recovery.