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Shan Diao Allegedly Recommended an Unsuitable REIT

Shan Diao (CRD #: 2885930), a broker registered with Equitable Advisors, is the subject of an investor dispute. This is according to their BrokerCheck record, accessed on February 28, 2024. Keep reading if you have questions regarding their conduct as a broker. 

Investor Allegations 

On November 21, 2023, an investor alleged that Shan Diao recommended an unsuitable Real Estate Investment Trust (REIT). 

What Are REITs? 

A real estate investment trust (REIT) allows investors to pool their funds together in a portfolio of real estate and earn returns without the responsibility of managing the properties themselves. 

However, the lack of liquidity associated with REITs may make them unsuitable for some investors.

What is an Unsuitable Investment?

FINRA Rule 2111 requires brokers to evaluate whether an investment strategy fits their investor’s financial goals. Brokers must examine the investor’s profile, which contains the following investor characteristics:

  • Age
  • Risk tolerance
  • Time horizon (i.e., how long the investor plans to hold the investment)
  • Investing experience
  • Tax status
  • Financial goals

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

Background Information 

Shan Diao 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 
  • Series 24 General Securities Principal Examination 

They are a registered broker in five states.

Kurta Law Can Help 

If you have worked with Shan Diao and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or 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.