Inland Securities Corporation Review: Private Placements & FINRA Sanctions

Inland Securities Corporation Review: Private Placements, REITs & FINRA Sanctions

Inland Securities Corporation (CRD #15807), based in Oak Brook, Illinois, is a FINRA-registered broker-dealer known for selling private placements and non-traded REITs, many of which are affiliated offerings.

Private placements and non-traded real estate investment trusts (REITs) are typically illiquid, complex investments that may carry significant risk for retail investors. Public records show that Inland Securities has been sanctioned by FINRA for supervisory and due diligence failures related to these types of offerings.

Investors who suffered losses in Inland Securities private placements or non-traded REITs may have recovery options through FINRA arbitration.

FINRA Sanction: Supervisory & Due Diligence Failures

In FINRA Case #2013036319701, Inland Securities Corporation submitted an Acceptance, Waiver and Consent (AWC).

Sanctions Imposed

• Censured

• Fined $40,000

• Required to retain an independent consultant

• Required to revise its written supervisory procedures (WSPs)

Without admitting or denying the findings, the firm consented to the sanctions.

FINRA’s Findings

FINRA found that Inland Securities’ supervisory procedures were not reasonably designed to achieve compliance with federal securities laws and FINRA rules in connection with its role as:

• Exclusive dealer-manager

• Placement agent for securities issued by affiliated companies

• Placement agent for private placements and non-traded REITs

The findings stated that:

• The firm’s procedures were not reasonably designed to ensure it did not make or use material misrepresentations or omissions

• The firm failed to ensure it had a reasonable basis for statements made in connection with its offerings

• The firm failed to implement required due diligence reviews

• The firm failed to ensure its president approved each offering as required

• The firm’s procedures did not clearly identify which principals were responsible for supervisory duties

When a firm acts as a placement agent for affiliated private placements or non-traded REITs, enhanced scrutiny and meaningful due diligence are critical to protect investors.

Risks of Private Placements & Non-Traded REITs

Inland Securities has been involved in the distribution of:

• Private placements

• Non-traded REITs

• Affiliated real estate offerings

These investments are often:

• Illiquid and difficult to sell

• Subject to high fees and commissions

• Lacking transparent market pricing

• Dependent on the sponsor’s performance

Because these securities are not publicly traded, investors may not fully understand the risks or true value of their holdings. Supervisory and due diligence failures in this area can increase the risk of investor harm.

What Do Inland Securities Complaints & Sanctions Mean for Investors?

Regulatory findings involving:

• Failure to conduct adequate due diligence

• Supervisory deficiencies

• Potential misrepresentations or omissions

• Conflicts involving affiliated offerings

can raise serious concerns for retail investors.

If a broker recommended a private placement or non-traded REIT without fully disclosing the risks, fees, illiquidity, or conflicts of interest, you may have grounds for a claim.

Can You Recover Losses from Inland Securities?

If you suffered losses involving:

• Inland Securities private placements

• Non-traded REITs

• Illiquid real estate investments

• Affiliated real estate offerings

you may be able to pursue recovery through FINRA arbitration.

FINRA arbitration allows investors to bring claims against brokerage firms for:

• Unsuitable investment recommendations

• Failure to supervise

• Inadequate due diligence

• Misrepresentation or omission of material facts

FAQs About Inland Securities Corporation

1. Has Inland Securities been sanctioned by FINRA?

Yes. Inland Securities was censured and fined $40,000 by FINRA for supervisory and due diligence failures related to its role as placement agent for affiliated private placements and non-traded REITs. The firm was also required to retain an independent consultant and revise its supervisory procedures.

2. What are non-traded REITs?

Non-traded REITs are real estate investment trusts that are not listed on public exchanges. They are typically illiquid, charge high fees, and may limit redemptions. Investors may not be able to easily sell their shares.

3. Are private placements risky?

Yes. Private placements are exempt from SEC registration and often involve limited disclosure. They can be speculative, illiquid, and unsuitable for many retail investors.

Free Consultation with The White Law Group

With offices in Seattle, Washington and Chicago, Illinois, The White Law Group represents retail investors nationwide in cases involving broker misconduct, supervisory failures, and private placement losses.

If you have concerns regarding Inland Securities complaints, lawsuits, or regulatory sanctions, we encourage you to contact our firm for a free, confidential consultation.

Contact The White Law Group today to discuss your potential recovery options at 888-637-5510.