Advisor Leslie Goldstein (Goldstein), currently employed by Securities America, Inc. (Securities America) has been subject to at least four customer complaints, two regulatory actions, and one employment termination for cause. According to a BrokerCheck report some of the customer complaints concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.
In December 2018 a customer complained that Goldstein violated the securities laws by alleging that the financial advisor did not explain the impact of an early withdrawal from a variable annuity on the client’s future annuity income benefits. The claim was withdrawn.
In July 2018 a customer filed a complaint alleging that Goldstein violated the securities laws by alleging concentrated positions in illiquid investments, annuities, life insurance and non-traded REITs which were unsuitable. The allegations also include churning, excessive commissions, breach of fiduciary duty, and negligence. The claim alleged $1,000,000 in damages and is currently pending.
Our firm often handles cases involving direct participation products, Non-Traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments. These products are almost always unsuitable for investors. In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments which provides a perverse incentives by brokers to create an artificial market for products that no honest advisor would sell.
According to studies, non-traded REITs have historically have underperformed even safe benchmarks, like U.S. treasury bonds – meaning that non-traded REITs provide paltry investment returns considering the risk an investor takes. Alternative investment products like oil and gas partnerships, REITs, and equipment leasing programs are rarely, if ever, appropriate for investors due to their high costs, illiquidity, high risks, and huge redemption charges of the products, if they can be redeemed at all. Investors often fail to understand that they have lost money until many years after agreeing to the investment.
Unfortunately, due to the high commissions brokers earn on these products they sell them to investors who cannot profit from them. These products have become so popular among brokers without providing any benefit to investors that many states now limit investors from investing more than 10% of their liquid assets in Non-Traded REITs. Many states impose these limitations because its understood that that they provide virtually no benefit to investors in relationship to their risks.
Goldstein entered the securities industry in 1984. From March 2001 until June 2014 Goldstein was registered with Sigma Financial Corporation. Since July 2014 Goldstein has been registered with Securities America out of the firm’s Park Ridge, Illinois office location.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.