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Investor Lawyers BlogReal Estate Investment Trust Cases: SII to Repay Clients Who Bought Non-traded REITs, Trustmont Financial Group is Ordered to Pay Client $1M, and Vereit Settles with More Investors Over Accounting Fraud Claims Against ARCP
SII Investments to Pay Back Clients Over Nontraded REITs
Massachusetts Secretary of the Commonwealth William Galvin is ordering SII Investments Inc. to repay clients who purchased non-traded real estate investment trusts through the independent brokerage firm. According to Galvin’s office, SII did not properly supervise these transactions.
It was last year that the Massachusetts regulator filed charges against SII, accusing the financial firm of failure to supervise and “dishonest or unethical conduct” related to non-traded REIT sales made to state residents. Galvin accused the broker-dealer of inflating the liquid net worth of clients by counting their annuities as liquid assets rather than non-liquid ones.