Diana Palmieri is Involved in a BDC and a REIT Dispute

Diana Palmieri (CRD #: 2889428), a broker registered with Vanderbilt Securities, is the subject of investor allegations. This disclosure appears on his BrokerCheck record, accessed on March 12, 2024. Details concerning this dispute are provided below. 

Investor Dispute

On February 8, 2024, an investor alleged that Diana Palmieri recommended unsuitable, illiquid REITs and BDCs. The investor is seeking $99,999. 

FINRA Rule 2111 – Unsuitable Long-Term Investments

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Brokers must also consider the investment time horizon and the investor’s liquidity needs – illiquid, long-term investments often do not suit a client’s best interests. Investments that do not take these factors into account may be unsuitable. 

Investors who rely on brokers for recommendations may be able to recover losses from unsuitable investment recommendations by pursuing FINRA arbitration.

What Are REITs?

Real estate investment trusts (REITs) allow investors to generate returns from a portfolio of real estate without being directly involved in property management. However, REITs tend to be illiquid, which makes them unsuitable for many investors. Non-traded REITs are especially risky because they are not traded on the public exchange, making them difficult or impossible to sell. 

BDCs

Business Development Companies (BDCs) extend loans to small and medium-sized companies, typically those that are distressed. While the high-interest rates charged by BDCs can mean high returns for investors, the possibility of the company defaulting on the loan and other risks can make BDCs unsuitable for some investors.

Background Information 

Diana Palmieri 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 24 General Securities Representative Examination 

He is a registered broker in 16 states and is a registered investment adviser in New York. 

During his 16 years of experience, he has registered with three firms: 

• Vanderbilt Securities (CRD #: 5953) 
• Vanderbilt Advisory Services (CRD #: 116537) 
• Grove Point Investments (CRD #: 1763) 
• H. Beck (CRD #: 1763) 

Kurta Law Can Help 

If you have worked with Diana Palmieri and you have concerns about your investments, do not hesitate to contact us 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 that 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. Do not let securities fraud go unchecked. Start your recovery process today.