Erez Law is currently investigating former LPL Financial LLC financial advisor Suhail Khan (CRD# 3168241) regarding unsuitable real estate investment trust (REIT) investments as well as those in the high risk energy sector. Khan has been registered with LPL Financial LLC in Chicago, Illinois from May 2013 to April 2017.
Over the past few years, oil prices have significantly declined. A supply glut in 2014 and 2015 led to some of the lowest prices the market has seen in recent years. In turn, securities values also dropped. The volatile energy sector experienced significant turmoil, and many energy companies were negatively impacted when global crude oil prices fell below $40 per barrel at the end of 2015. This was the lowest level since early 2009, as supply was in excess of global demand. Oil and gas companies experienced a spike in bankruptcies, which have left many investors reeling.
A REIT is a company, modeled after mutual funds, that owns or finances income-producing real estate and provide investors of all types regular income streams, diversification and long-term capital appreciation. Unlike other real estate investments, REITs are often entirely illiquid.
In November 2017, FINRA barred Khan after he failed to respond to FINRA request for information.
Khan has been the subject of one customer complaint in 2018, according to his CRD report:
May 2018. “Customer alleges that between 2013 and 2017, the advisor recommended unsuitable, speculative investments in the advisor’s own business, a hedge fund, oil and gas partnerships and a real estate investment trust. Customer further alleges that some of these investments constituted unregistered securities.” The customer is seeking $775,000 in damages and the case is currently pending.
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, LPL Financial LLC may be liable for investment or other losses suffered by Khan’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.
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Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form below for a free consultation.
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