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Cynthia Giovacchino Allegedly Recommended Unsuitable REITs

Apr 22, 2022 REITs

Cynthia Giovacchino (CRD #: 3274194), a broker registered with LPL Financial, allegedly made unsuitable investment recommendations, according to her BrokerCheck record, accessed on April 18, 2022. Keep reading if you want to learn more about Cynthia Giovacchino’s conduct as a broker.

Allegations of Unsuitable REIT Recommendations

Cynthia Giovacchino has faced several allegations of recommending unsuitable investments in real estate investment trusts (REITs).

  • In a pending dispute filed on January 24, 2022, an investor claims Cynthia Giovacchino recommended an unsuitable REIT investment in 2014.
  • Two suits filed in 2020 alleged that Cynthia Giovacchino recommended unsuitable REITs. Investors allege these investments were insufficiently disclosed and that inaccurate information involving the net worth and liquid net worth of REITs were added to documentation after clients had signed it. Collectively, these suits were settled for approximately $99,407.26.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as those that fit an investor’s profile. Brokers must use the information in investors’ profiles—such as clients’ age, tax status, and risk tolerance—to inform their recommendations. Investors can recover losses caused by unsuitable investment recommendations by pursuing FINRA arbitration.

What is a Real Estate Investment Trust?

A real estate investment trust (REIT) is a company that owns and manages real estate properties. Investors can purchase shares in the REIT and earn dividends without incurring the costs of managing the real estate themselves. However, because REITs are illiquid investments, they are not suitable for all investors.

Background Information

Cynthia Giovacchino has passed the following exams:

  • Series 66 - Uniform Combined State 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

Cynthia Giovacchino is a registered broker in 30 states as well as Puerto Rico. She is also a registered investment adviser in Connecticut and Texas.

In the past, she has worked for UVEST Financial Services Group (CRD#:13787) and Webster Investment Services (CRD#:46588).

Kurta Law Can Help

If you worked with Cynthia Giovacchino and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want 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.