To settle an alleged elder abuse case, a unit of LPL Investment Holdings has been ordered to pay nearly $1.37 million to two investors in San Diego, California. The investors – Heinrich and Araceli Hardt – alleged that LPL misled them about fractional real estate investments in fractional interests in commercial real estate made through Direct Invest, LLC.
The Hardts say they were initially drawn to the investments because they were led to believe that they would receive income on the investments comparable to rental income they had previously been receiving. Yet, the monthly checks they received from the real estate investments were nottied to rental income, but to a combination of their own funds and money that the investment company had borrowed. The Hardts allege that this information was not adequately disclosed to them. Brian Miller, their lawyer, adds that LPL “used tricks” in structuring the deal with the Hardts.
The Hardts allege that in addition to being misled by LPL with regards to the nature and implications of their investments, they also were made to pay exorbitant fees ranging between 22 to 25 percent of the $3.4 they had initially invested.
A FINRA panel found LPL liable and awarded the Hardts $1.37 million.
Miller further adds that under California law, elder abuse claims may be brought in cases involving alleged securities fraud. For more information on financial or physical elder abuse claims throughout California, contact the Evans Law Firm.