{"id":1205,"date":"2013-02-26T01:26:09","date_gmt":"2013-02-26T01:26:09","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2013\/02\/lure_of_high_returns_make_reta"},"modified":"2022-03-10T16:35:59","modified_gmt":"2022-03-10T22:35:59","slug":"lure-of-high-returns-make-reta","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/lure-of-high-returns-make-reta\/","title":{"rendered":"Lure of High Returns Make Retail Investors Easy Targets for Securities Fraud Involving Complex Financial Products"},"content":{"rendered":"

\t\t\t\tIn the wake of the recent financial crisis, retail investors, especially those seeking to save for retirement and who lost much when their stock portfolios and mutual funds dropped, are feeling compelled to get involved in complex products that until recently were targeted to their more sophisticated counterparts. Many want better returns than what they can get via government bonds and bank deposits. Unfortunately, regulators now have to contend with a barrage of related investor fraud claims.<\/p>\n

According to The New York Times, tens of thousands of retail investors placed money into speculative bets that were marketed by aggressive financial advisers. Many of these alternative investments have started to go bad and are being named in a huge bulk of the more recent prosecutions and securities lawsuits.<\/p>\n

It was just earlier this month that Massachusetts Secretary of the Commonwealth William Galvin ordered LPL Financial (LPLA) to pay $2.5 million in a REIT case for the allegedly improper sale of nontraded real estate investment trusts to hundreds of state residents. Approximately $28 million was invested in seven REITs involving 597 transactions. Galvin’s office accused the financial firm of not properly supervising its agents, who pushed the sales, and of engaging in business practices that were “dishonest and unethical.” The state contends that LPL made at least $1.8 million in commissions from the sales, which took place between 2006 and 2009. Meantime, in Arkansas, most of the 66 securities cases that are currently open reportedly involve unsophisticated investors that placed their funds in complex instruments.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

In the wake of the recent financial crisis, retail investors, especially those seeking to save for retirement and who lost much when their stock portfolios and mutual funds dropped, are feeling compelled to get involved in complex products that until recently were targeted to their more sophisticated counterparts. Many want better returns than what they […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3741],"tags":[],"class_list":["post-1205","post","type-post","status-publish","format-standard","hentry","category-securities-fraud"],"yoast_head":"\nLure of High Returns Make Retail Investors Easy Targets for Securities Fraud Involving Complex Financial Products — Investor Lawyers Blog — February 26, 2013<\/title>\n<meta name=\"description\" content=\"In the wake of the recent financial crisis, retail investors, especially those seeking to save for retirement and who lost much when their stock — February 26, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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