Ex-LPL Broker Marketed Non-Traded Investments To Mississippi Retiree
A retired investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against LPL Financial and its former broker, Tamber King Proctor, seeking up to $100K in damages.
The claimant contends that LPL Financial and Proctor should have never recommended that he invest in the business development company (BDC), FS Energy & Power Fund (FSEP), and the Northstar Healthcare Real Estate Investment Trust (REIT).
Now, the older investor is alleging unsuitable investment recommendations, breach of contract, securities violations, breach of fiduciary duty, misrepresentations and omissions, grossly negligent behavior, and breach of agreement.
After LPL, Tamber Proctor joined Securities America as a Broker, but is no longer registered with Securities America or any other brokerage firm at this time. However, he was a registered investment advisor in Waynesboro, MS for Proctor Investments and Insurance through at least December 2020.
Our Mississippi FINRA attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are representing this retiree in his broker-dealer negligence case against LPL Financial and Tamber Proctor.
We help investors throughout the US to recoup their losses caused by the carelessness or fraudulent actions of brokerage firms and their registered representatives. Call our Gulfport office at (228) 206-2493 or contact us online.
LPL Financial Overconcentrated Older Investor’s Account in Illiquid Investments
This claimant, who is an inexperienced investor, didn’t want to take on much risk. He entrusted his savings to LPL Financial in the hopes of earning modest returns. He was reassured that his investments would be safe.
Instead, the broker-dealer and Proctor concentrated the retiree’s account in the FS Energy and Power Fund. This is a non-traded BDC that invests in debt and equity securities of private energy and power companies. A highly risky, illiquid investment, the FS Energy and Power Fund was definitely an unsuitable investment recommendation for this retiree’s IRA.
In March, the FS Energy and Power Fund announced that it was suspending investor distributions. Its share price and YTD average return have dropped significantly.
Investor Was Also Recommended the Northstar Healthcare REIT
LPL Financial and Proctor also recommended the Northstar Healthcare REIT, which is a non-traded real estate investment trust that was unsuitable for this older investor’s portfolio.
Northstar Healthcare REIT investors have not been receiving income distributions for some time now and the non-traded REIT has sustained huge losses. This was always a risky, volatile investment and yet, LPL Financial and its then-registered representative recommended it to the claimant.
Many Northstar Healthcare REIT investors were told by their financial advisors that this investment was safe, profitable, and would even likely go public. That has not been the outcome at all.
This non-traded REIT should only have been recommended to investors who can handle a lot of risk. Now, many investors, including retail investors and retirees, have lost money because they have Northstar Healthcare REIT in their portfolios.
Northstar Healthcare REIT and FS Energy and Power Fund Fraud Attorneys
SSEK Law Firm works with investors throughout the state. We represent clients who have experienced financial losses because their broker-dealer unsuitably recommended Northstar Healthcare REIT and FS Energy and Power Fund to customers.
Call our Mississippi securities fraud lawyers at (228) 206-2493 and ask for your free, initial case consultation.