National Planning Corp., along with their financial advisor, Joseph Russo, was ordered to pay $1.2 million in damages after Russo allegedly recommended a risky real estate investment to an elderly client. In 2003, the investor and his wife invested $2.5 million, which was practically all of their savings, in a commercial building with a single tenant lease. A decade after the initial investment there was no tenant, which meant no income for the investors. The property ended up going into foreclosure and the investor received $141,000 from the sale of the property. National Planning claimed that the investor made $1.8 in income from the property and received tax deferrals from owning it. The investor's lawyer argued that the real estate investment was too speculative and concentrated for an elderly couple.
If you believe you have been victimized by securities fraud, financial malpractice, or theft by a FINRA registered broker, please call the securities attorneys of the Costello Law Group at (877) 418-0003 for a free consultation.
To read more, please visit: http://www.wsj.com/articles/adviser-brokerage-to-pay-iowa-investor-1-2-million-in-damages-1424379007