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Investor Claims Ben Herritage Recommended Unsuitable Investments 

Dec 28, 2021 Non-Traded REITs

Ben Herritage (CRD #: 4027113), a registered broker and investment advisor with LPL Financial, is involved in an investor dispute, according to his BrokerCheck record, accessed on November 29, 2021.  

Investor Allegations 

On October 13, 2021, an investor filed a dispute alleging that Ben Herritage failed to conduct proper due diligence while recommending a Non-Traded REIT. The clients further alleged that Ben Herritage also misrepresented and omitted material facts. Non-Traded REITS are extremely risky investments and are not suitable for most investors.  

The total damage requested is $150,000. The dispute is still pending. 

What are REITS? 

A real estate investment trust (REIT) is an entity that holds a portfolio of income-producing real estate properties. A REIT could contain anything from office buildings and other commercial units to apartment buildings or healthcare facilities. By putting their money into a REIT, investors can own a share of those properties. REITs can be unsuitable due to their illiquid nature. Many REITs expect investors to keep their money in the investments for an extended period. REITs may also be unsuitable based on their underlying real estate investments. 

If you lost money in unsuitable REITs, you might have a viable claim against your broker, and you should not hesitate to contact the securities attorneys of Kurta Law.  

Unsuitable Investment Recommendations Violate FINRA Rule 2111 

FINRA Rule 2111 defines suitable investments as securities that fit an investor's profile. An investor's profile includes information about their risk tolerance, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration. 

  • Investments can be unsuitable because they are high risk and likely to lose money. 
  • Securities may also be unsuitable because they are illiquid, meaning that they are intended to be held for an extended time, and investors may have to pay high fees to cash out. 
  • Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades. 
  • These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.

Background Information 

Ben Herritage has passed the following exams: 

  • Series 65 - Uniform Investment Adviser Law Examination 
  • Series 63 - Uniform Securities Agent State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 7 - General Securities Representative Examination 
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination 

Ben Herritage is a registered broker in eight states. He is also a registered investment advisor in Texas and South Carolina.  

Other than LPL Financial, Ben Herritage has worked with the following firms: 

  • Crown Capital Securities (CRD#:6312) 
  • Brookstone Securities (CRD#:13366) 
  • Broker-Dealer Financial Services Corp. (CRD#:8073) 
  • Lifemark Securities Corp. (CRD#:16204) 
  • Capital Financial Partners (CRD#:169796) 
  • MML Investors Services (CRD#:10409) 

Kurta Law Can Help 

If you have worked with Ben Herritage and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.