Christopher Campbell Faces Civil Lawsuits Tied to Risky Direct Real Estate Investments

Real estate investments are often presented as secure and profitable options for building wealth, but when brokers fail to clearly communicate risks or intentionally mislead investors, the results can be financially disastrous.

Christopher William Campbell (CRD#: 5597534), a broker affiliated with Raymond James Financial Services in Buffalo, New York, is facing significant legal scrutiny over two lawsuits alleging misrepresentation tied to complex real estate limited partnerships (LPs). Investors claim losses totaling more than $560,000 due to these alleged misrepresentations.

Below, we’ll cover the allegations against Campbell, explain why real estate limited partnerships can pose substantial risks and highlight red flags investors should watch for. Sonn Law is currently reviewing investor claims involving Campbell and offers free consultations for anyone concerned about potential broker misconduct.

Investor Allegations Against Christopher Campbell

Two pending civil lawsuits were filed against broker Christopher Campbell on November 14, 2024, in the Superior Court of California, South Division, Los Angeles. Both cases involve claims that Campbell misrepresented real estate-based direct investments, specifically direct participation programs (DPPs) and LP interests.

• Case #24LBCV02340: The plaintiff alleges they were misled into a real estate investment by Campbell’s misrepresentations. Claimed damages: $282,434.75.
• Case #24LBCV02342: In a separate but nearly identical complaint, plaintiffs allege similar misrepresentation regarding a real estate investment. Claimed damages: $282,537.50.

Together, the claims represent more than $564,000 in alleged damages, and both remain pending.

Campbell denies all allegations, stating he never had contact with the plaintiffs and was not involved in opening their accounts or advising them. He described the accusations as “unwarranted, egregious, untrue, and misconstrued” and expressed confidence that the lawsuits will ultimately be dismissed.

While the claims have not yet been resolved, the nature and severity of the allegations and the significant financial stakes involved raise serious concerns for current and former clients of Campbell and Raymond James Financial Services, Inc.

Employment Timeline and Licensing

Christopher Campbell is currently affiliated with Raymond James Financial Services, Inc., and its advisory arm, Raymond James Financial Services Advisors, Inc. He has worked at the firm’s Buffalo, New York office since November 2017.

Before joining Raymond James, Campbell was registered with Waddell & Reed in Sherman Oaks, California, and Overland Park, Kansas, from 2016 to 2017.

According to the Financial Industry Regulatory Authority (FINRA), Campbell holds active registrations in 37 U.S. states and territories, including New York, California, Texas and Florida. He has passed three securities industry exams: the Securities Industry Essentials (SIE), the Series 7 (General Securities Representative) and the Series 66 (Uniform Combined State Law Exam). However, he does not hold any principal or supervisory licenses​.

The Risks of DPPs and Real Estate LPs

DPPs and real estate LPs are investment products where individuals directly participate in a specific business venture, such as a real estate development or commercial property. Often marketed as exclusive opportunities offering potential tax advantages, these products come with significant risks and complexity that many investors don’t fully anticipate.

Key risks include:

• Illiquidity and Long Holding Periods: DPPs and real estate LPs generally lack a public trading market, making it challenging for investors to sell or cash out their positions quickly. These investments frequently have lengthy holding periods, often several years or more, leaving investors unable to access their funds when needed.
• Lack of Transparency and Difficult Valuation: Unlike publicly traded investments, DPPs and LPs typically provide limited ongoing disclosure, making it hard for investors to assess their true value and performance. Investors may not fully understand how their investments are performing until the partnership ends, sometimes years after the initial investment.
• High Commissions and Fees: Brokers often earn substantial commissions and management fees for selling DPPs and LPs. These expenses reduce the actual investment amount working on behalf of the investor, impacting returns and creating potential conflicts of interest.

Due to these complexities, brokers are obligated under FINRA rules to carefully evaluate whether DPPs and real estate LPs are suitable for an investor’s individual financial situation and investment objectives before recommending them.

What Investors Should Watch For

Complex investments like real estate limited partnerships and direct participation programs require careful evaluation, and investors should stay alert to possible warning signs of broker misconduct. Key red flags include:

• Not fully understanding investment risks or being told an investment is “safe,” “guaranteed” or carries minimal risk.
• Inability to access your funds when you need them, especially if withdrawal requests are denied or delayed unexpectedly.
• Overconcentration in a single type of asset, such as real estate LPs, potentially exposing you to higher-than-acceptable risk.
• Lack of clear documentation or communication from your advisor, or receiving vague responses when you ask about your investments.
• Receiving legal notices or being contacted regarding involvement in a lawsuit tied to investments recommended by your broker.

If you have noticed any of these signs or have concerns about how your advisor managed your portfolio, consider speaking with an experienced securities attorney who can review your investments and advise you on potential recovery options.

Recover Investment Losses With Sonn Law

If you experienced financial losses after investing with Christopher Campbell, you may have grounds for financial recovery. Sonn Law has more than 30 years of experience representing investors nationwide in securities arbitration and litigation, successfully holding brokers and firms accountable for misconduct and unsuitable investment recommendations.

Our firm is led by attorney Jeffrey Sonn, a nationally recognized advocate for investor rights with a strong record of recovering millions of dollars for defrauded investors. We offer free, confidential case evaluations and represent clients on a contingency basis, meaning you pay nothing unless we recover on your behalf.

Contact Sonn Law today to discuss your potential claim and understand your legal options.