Adam Lunceford, Financial Advisor at LPL Financial, Named in Customer Dispute Seeking $250,000

Adam Lunceford is facing allegations that he recommended unsuitable investments in non-traded REITs.

The Sonn Law Group is investigating allegations that Adam Lunceford made unsuitable recommendations. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.

Adam Lunceford (CRD#:4686499) is currently a Financial Advisor at LPL Financial In Scottsdale, Arizona. Adam Lunceford has been in the securities industry since 2003, previously working for Securities Service Network, Merrill Lynch, and Edward Jones.

According to his BrokerCheck report, the customer dispute was filed against him on June 26, 2019. The claimant alleged that Lunceford disregarded his objectives by recommending that he invest more than half his portfolio in illiquid non-traded REITs. The transactions at issue occurred in 2013, when Lunceford was still employed with Securities Service Network.

Non-traded REITs are securities that do not trade on a public securities exchange. For this reason, non-traded REITs can be illiquid. The underlying collateral of the REITs consists of income producing residential or commercial real estate. Typically, the commissions generated on non-traded REITs are higher than industry norm (approx. 7%), and the investments themselves may be extremely volatile due to associated risk factors. Non-traded REITs are only suitable for investors with a long-term investment horizon who are willing to accept higher levels of risk in their investments.

The claimant alleged that Lunceford recommended he invest approximately 80% of his IRA in high commission, illiquid and speculative Non-Traded REITs in direct contrast to his stated objectives. Specifically, Adam Lunceford recommended that Claimant invest $400,000 in the American Realty Capital Trust V (“ARC V”) and $400,000 in Griffin American Healthcare REIT II (“Griffin II”). It is believed that Adam Lunceford earned commissions of nearly $60,000 in one day on these two trades alone.

Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional committed acts in violation of FINRA Rules, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.