LPL one the largest independent U.S. broker-dealers, was accused by Massachusetts regulators today of dishonest and unethical business practices and failure to supervise agents who made improper sales.
The complaint relates to sales of seven non-traded real estate investment trusts in violation of state and company rules, according to a statement from the state’s senior securities watchdog, Secretary of the Commonwealth William F. Galvin. LPL earned at least $1.8 million in commissions on the sales from 2006 through 2009, the state said.
The complaint seeks a cease-and-desist order, censure and restitution for investors.