Richard Tulloch Allegedly Over-Concentrated an Investor in Northstar Healthcare REIT

Richard Tulloch (CRD #: 5180553), a previously registered broker with Avatar Securities, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on December 22, 2023. Details regarding this dispute and two other investor disputes are provided below. 

On October 31, 2023, an investor alleged that Richard Tulloch over-concentrated an investor’s money into one illiquid REIT. He allegedly claimed that the REIT was a safe investment and would continually return distributions from profit and not return of principal. Northstar Healthcare Income REIT allegedly resulted in considerable losses for many investors. 

The investor is seeking $300,000. 

What is a REIT? 

A real estate investment trust (REIT) allows investors to generate returns from a real estate portfolio without taking on the cost and responsibility of managing the properties. REITs tend to be illiquid, making them unsuitable for many investors. Illiquid investments may feature steep fees if an investor wants to get out early. 

Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles include information on the investor’s liquidity needs. Investments that do not take these factors into account may be unsuitable. 

Previous Investor dispute

On April 4, 2019, an investor alleged that a particular investment allocation was unsuitable for an investor’s risk tolerance and that Richard Tulloch misrepresented the investment. 

Background Information 

Richard Tulloch passed the following exams: 

• Series 66 Uniform Combined State Law Examination
• Series 63 Uniform Securities Agent State Law Examination 
• Series 57TO Securities Trader Exam 
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 
• Series 6 Investment Company Products / Variable Contracts Representative Examination 

He has registered with the following firms: 

• Avatar Securities (CRD #: 147763) 
• Wayne Hummer Investments (CRD #: 875) 
• Chase Investment Services (CRD #: 25574) 

Kurta Law Can Help 

If you have worked with Richard Tulloch and 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.