Wednesday, December 2, 2015

Cetera Fined For Failing to Apply REIT Discounts

Cetera Investment Services was censured; fined $30,000; ordered to pay $17,883.66, plus interest, in restitution to customers; and ordered to review all non-traded real estate investment trust (REIT) and business development company (BDC) sales it made during the relevant period and certify that it has identified all transactions for which a customer did not receive the applicable volume discount and provide restitution if necessary.

Typically, investors are entitled to discounted prices on purchases of certain nontraded REITs, typically when the sale is greater than $500,000.  according to various prospectuses of nontraded REITs.

Mark Astarita is a New York securities lawyer who represents investors, brokers and firms in securities regulatory, enforcement and arbitration matters across the country. For a free consultation call Mark at 212-509-6544 or email him at

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