Ansonia, CT Financial Advisor Named in Investor Claims Involving REIT & BDC Losses
Cynthia Ann Giovacchino, who is a longtime LPL Financial broker, has been named in four customer disputes. The claimants are accusing her of making unsuitable recommendations involving alternative investments.
These investments included business development companies (BDCs) and real estate investment trusts (REITs). Giovacchino has worked in the industry for 22 years. She is also a Senior Vice President at Webster Investments.
Our investment fraud lawyers are speaking with customers of Connecticut financial advisor Cynthia Giovacchino to determine whether any significant losses they experienced might be grounds for a securities arbitration claim.
Contact us at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today so that we can help you explore your legal options.
LPL Financial Broker Facing Accusations of Unsuitability
The four customer disputes noted in Giovacchino’s BrokerCheck include:
- September 2021: In this pending FINRA arbitration case, the customer is alleging that Giovacchino unsuitably recommended alternative investments that were illiquid, inappropriate for the claimant’s investing goals, and charged high commissions.
- January 2020: This customer dispute, over losses sustained in REITs, was concluded with a nearly $64K settlement. The customer accused Giovacchino of not only unsuitably recommending REITs but also of failing to disclose their risks. The LPL Financial broker also submitted inaccurate information, including about the client’s net worth, on key documentation.
- January 2020: Making similar allegations involving a REIT investment, this investor claim was settled for nearly $36K. This was nearly twice the amount the claimant had requested in damages.
- June 2018: This customer’s unsuitability claim was denied.
Other firms where Cynthia Giovacchino used to be a broker include U-Vest Financial Services and Webster Investment Services.
LPL Financial Fined $1.4M Over Unsuitable REIT Sales
In 2015, LPL Financial LLC agreed to pay a $1.4M fine and also restitution to customers who were inappropriately sold real estate investment trusts by its brokers. More than 2,000 of these unsuitable non-traded REIT sales purportedly occurred between January 2008 and December 2013.
The settlement came after a North American Securities Administrators Association (NASAA) task force determined that LPL brokers violated standards involving customer suitability and concentration limits. Also, NASAA claimed the broker-dealer neglected to properly supervise the transactions.
Seasoned REIT Fraud Investment Lawyers
If you believe that you suffered losses when working with LPL Financial broker, Cynthia Giovacchino, get in touch with our REIT fraud lawyers today. Our experienced securities lawyers have helped thousands of investors to recover losses from their brokerage firms and investment advisors.
To schedule your free, no-obligation case assessment, contact SSEK Law Firm at (800) 259-9010 today.