CHICAGO, May 6, 2011 (GLOBE NEWSWIRE) -- Stoltmann Law Offices and Higgins and Burke announce they have filed FINRA arbitration claims on behalf of a widow against Linsco Private Ledger and a 79 year old investor against Ameriprise.
The FINRA arbitration statement of claim alleges sales practice violations against the brokerage firms including fraud, negligence, unsuitable investment recommendations, misrepresentations and omissions related to the failure to fully disclose the risks associated with non-traded REITs. The claims also allege unsuitable investment recommendations.
The FINRA claims seek recovery of investment losses in excess of $798,388, along with attorney's fees, interest and punitive damages against Linsco and $501,732 against Ameriprise. The law firms represent multiple other clients in Behringer Harvard REITs as well as those issued by Inland, Wells Real Estate and others against the brokerage firms who sold them.
According to Chicago securities attorney Andrew Stoltmann, "We believe many conservative or elderly clients were sold non-traded REITs. In some cases, the true risks of these investments were not disclosed to the clients. Many retirees who couldn't afford to take the risks associated with non-traded REITs had substantial percentages of their net worth concentrated in these investments. In some instances, we believe these were unsuitable investment recommendations. Fortunately, some, or all, of the frozen funds or investment losses in non-traded REITs may be recoverable against the brokerage firms who sold them through FINRA arbitration claims and lawsuits. The brokers who sold these investments are not our targets and we are not naming them in future actions."
According to St. Charles, Illinois attorney John Burke, "Many non-traded REITs are far riskier than people knew and not appropriate in large concentrations for elderly, retired or conservative investors. Often, these risks were not disclosed or glossed over by the brokerage firms who sold them. We believe thousands of clients nationally may have been sold non-traded REITs in unsuitable amounts."
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CONTACT: Stoltmann Law Offices Andrew Stoltmann o: 312-332-4200 c: 312-545-5711 10 S. LaSalle 35th Floor Chicago, IL 60603 Higgins and Burke P.C. John Burke Esq. o: 630.762.9081 2560 Foxfield Road, Suite 200 500 Saint Charles, IL 60174 www.HigginsandBurke.com JBurke@HigginsandBurke.com