On October 15, 2020, Kevin Barletta, formerly registered as a general securities representative through an association with LPL Financial LLC, submitted a Letter of Acceptance, Waiver and Consent for the purpose of proposing a settlement of alleged rule violations connected to prohibited cross trades of alternative investment products.
According to his FINRA BrokerCheck report, Kevin Barletta is currently with Royal Alliance Associates, Inc. (CRD# 23131) in Hawthorne, NY, and has been with the firm since 2017.
According to FINRA’s findings, in September and October of 2016, Barletta circumvented LPL Financial’s written supervisory procedures in connection with prohibited cross trades of alternative investment product. He did so by falsifying journal entry forms to effect three unlisted REIT sales from one customer account to two other customer accounts. In doing so, Barletta violated FINRA Rule 2010. He also caused his firm to create and maintain inaccurate books and records in violation of FINRA Rules 4511 and 2010.
Barletta’s Broker Check report contains a disclosure showing an employment separation from LPL Financial LLC in December 2016. Barletta was discharged from LPL Financial relating to allegations that the firm reasonably concluded that he failed to adhere to policy regarding cross-trades.
Barletta’s conduct was in relation to unlisted REITs. A Real Estate Investment Trust (REIT) is a company that owns or finances real estate. The real estate could include office buildings, apartments, shopping malls, restaurants, mortgages, etc. Most REITS purchase assets as part of their own investment portfolio. REITS allow investors to earn a share of the income produced by the underlying assets. However, an unlisted REIT is a REIT where the trust’s shares do not trade on a national securities exchange. For that reason, investments in unlisted REITs generally are illiquid and bear increased risk.
The legal team at The Frankowski Firm has sadly seen the fortunes of too many investors crushed due to issues with brokers and Non-Traded REITs. Our securities negligence lawyers hold brokers and brokerage firms accountable when financial advisors inappropriately deal with REITs, whether it is to gain a fee, conflicts of interest exist, when brokers fail to make proper disclosures, and when investment firms fail to supervise their brokers.
If you or someone you know has lost money relating to unlisted REITs and Kevin Barletta, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.