Stephen Sperling Involved in Allegations of Unsuitable Investments

Stephen Sperling (CRD #: 3061073), a broker registered with Wintrust Investments, is facing an investor dispute. This is according to his BrokerCheck record, accessed on July 31, 2023. 

On July 6, 2023, an investor alleged that Stephen Sperling made unsuitable recommendations, namely that clients invest a significant portion of their assets into non-traded REITs. He allegedly did not fully disclose the risks associated with these investments and did not educate the clients on the illiquid nature of these investments. The investor is seeking $100,000 in this pending dispute. 

On May 8, 2023, an investor alleged that Stephen Sperling unsuitably recommended non-traded investment vehicles that were high-risk. The investor is seeking $100,000.

What Are REITs?

Real estate investment trusts (REITs) allow investors to generate returns from a portfolio of real estate without needing to maintain the properties themselves. 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. 

FINRA Rule 2111

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

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

Illiquid investments are often unsuitable because investors need to access their funds before the maturity date. 

FINRA Rule 2020

FINRA Rule 2020 prohibits the misrepresentation of investments or omission of material facts. Material facts include information about an investment’s potential returns, as well as charges, expenses and fees.Brokers must always disclose the risks associated with illiquid investments, such as early withdrawal fees. 

Background Information

Stephen Sperling 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 

He is a registered broker in 26 states and is a registered investment adviser in Illinois. 

Stephen Sperling has registered with the following firms: 

• WinTrust Investments (CRD #: 875) 
• LaSalle Financial Services (CRD #: 20373) 
• Harris Investorline (CRD #: 6580) 
• Harris Investors Direct (CRD #: 17664) 

Kurta Law Can Help

If you worked with Stephen Sperling 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.