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Written by 8:44 pm Blog, Securities Fraud

FINRA Lawsuit filed against Cetera Advisors involving Unsuitable Investments 

FINRA Lawsuit filed against Cetera Advisors involving Unsuitable Investments, featured by top securities fraud attorneys, the White Law Group

The White Law Group announces the filing of FINRA Lawsuit involving High Risk Non-Traded REITs and BDCs 

The White Law Group announces the filing of a FINRA Arbitration claim submitted on behalf of a California resident, alleging violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.

The claim further alleges that Cetera Advisors LLC unsuitably invested its clients in Hospitality Investors Trust Inc. and other alternative investments, including the following: Philip Edison Grocery Center REIT, NorthStar Healthcare Income, KBS Real Estate Investment Trust III, Hines Global Trust, Griffin Capital Essential Asset REIT, FSKR, Business Development Corporation of America, Griffin Investment, Griffin Real Estate CI and Healthcare Trust, Inc. 

Hospitality Investors Trust filed for Chapter 11 bankruptcy protection on May 19, 2021 to restructure its $1.3 billion unsecured debt. 

The FINRA claim seeks damages in an amount between $500,000.01 and $1,000,000. 

It is further alleged that the financial advisor that was involved with the accounts at issue is Grace Guo (Mei Xia Guo, CRD#: 4201624). It is further alleged that Gao and Cetera Advisors LLC failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors.  

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.

According to D. Daxton White, managing partner of The White Law Group, “It is unfortunate, but we believe that many more investors have suffered devastating losses due to the broker-dealer’s failure to supervise and don’t realize they have recovery options.”

“Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that the financial advisor violated FINRA rules and the employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.”

FINRA Claim to Recover Financial Losses

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. ?It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court. 

Our firm has represented numerous investors seeking relief from financial losses after their brokerage firm recommended an unsuitable investment in Hospitality Investors Trust. To learn more about our recent claims please see:  FINRA Lawsuit filed against Emerson Equity LLC involving $2.5 Million in GWG Bonds 

To learn more about our investigation of Hospitality Investors Trust, please see: 

Hospitality Investors Trust Inc. (HIT REIT) Files Chapter 11 Bankruptcy *UPDATED* 

 The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
For more information on The White Law Group and the lawsuit filed against Cetera Advisors LLC, please contact the firm at 1-888-637-5510 or visit?https://www.whitesecuritieslaw.com.  

 

 

Tags: , , , , , Last modified: June 1, 2022