![NorthStar Healthcare Income Real Estate Investment Trust](https://www.erezlaw.com/wp-content/uploads/2022/01/northstar-healthcare-income-reit.png)
According to public records, a former client of Enrique Lopez (CRD# 2209385) filed a FINRA complaint against LPL Financial LLC for Northstar Healthcare Income REIT (real estate investment trust) and other REIT losses. It is alleged that LPL Financial LLC failed to inform its former client of the risks associated with investing in the REITs or the high commissions connected to those sales. It is also alleged that Lopez advised his client that the REITs were secure investments and that the client would be able to sell the investments at any time. Unfortunately for the client, this was not the case, as the value significantly declined.
Northstar Healthcare Income is a non-traded REIT that invests in equity, debt and securities investments in healthcare real estate. Its shares were sold at $10 a share. In December 2017, Northstar Healthcare Income reduced its distribution payments by more than 50%. In December 18, 2018, its shares were devalued to $7.10 a share, however the shares are illiquid and trade a steep discount in the secondary market in the $2-$3 range. In early 2019, Northstar Healthcare Income announced the suspension of all distribution payments to investors.
Lopez has been registered with Arkadios Capital in Mcallen, Texas since 2018. Previously, Lopez was registered with LPL Financial LLC in Mcallen, Texas from 2008 to 2018. Lopez has been the subject of three additional customer complaints, one of which was denied, according to his CRD:
June 2019. “Allege that between 2014 and 2016 advisor misrepresented and recommended unsuitable, concentrated investments in speculative real estate investment trusts. Customers also allege that advisor recommended an unsuitable annuity switch.” The customer is seeking $2,000,000 in damages. This complaint was regarding variable annuities and real estate securities and took place while Lopez was registered with LPL Financial LLC.
April 2017. “Customer, who was the subject of forfeiture actions by state and foreign governments based upon his own misrepresentation of citizenship, and who forfeited assets pursuant to a settlement with the governments in connection with those proceedings, now alleges that firm and advisors sold him unsuitable products for which he was not eligible. Activity period: October 2011 to December 2015.” The customer sought $13,927,630.81 in damages and the customer was granted $1,554,839.70 in damages. The complaint took place while Lopez was registered with LPL Financial LLC and was regarding variable annuities.
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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