Investor Alert: Former Securities Service Network, LLC Broker Adam Lunceford REIT Losses
Posted on Wednesday, October 30th, 2019 at 9:57 am
Former Securities Service Network, LLC broker Adam Lunceford (CRD# 4686499) faces customer complaints about non-traded real estate investment trusts (REITs). Lunceford has been registered with LPL Financial LLC in Scottsdale, Arizona since 2013. Previously, Lunceford was registered with Securities Service Network, Inc. in Scottsdale, Arizona from 2010 to 2013.
A REIT is a company, modeled after mutual funds, that owns or finances income-producing real estate and provides investors of all types of regular income streams, diversification, and long-term capital appreciation. Unlike other real estate investments, REITs are often entirely illiquid. Non-traded REITs hold additional risks for investors because they often feature limited redemption programs, high fees and commissions, and internal conflicts of interest. Unlike stocks on the New York Stock Exchange (NYSE), REITs are not publicly traded and cannot be sold through an exchange, only through secondary market auctions.
Lunceford has been the subject of two customer complaints between 2014 and 2019, one of which was denied, according to his CRD report:
June 2019. “It is alleged that Mr. Lunceford disregarded the Claimant’s objectives by recommending that he invest more than half his portfolio at SSN in illiquid non-traded REITS. The transactions at issue occurred in 2013.” The customer is seeking $250,000 in damages and the case is currently pending. This case is regarding real estate securities and took place while Lunceford was employed by Securities Service Network, LLC.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Securities Service Network, LLC may be liable for investment or other losses suffered by Lunceford’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.