National investment loss and securities law firm Haselkorn & Thibaut issues an important notice to customers of broker Katie Wei, also known as Lanting Wei, and Cetera Investment Services, after their recommendations of unsuitable alternative investments resulted in two investors suffering $300,000 in damages. The law firm urges all customers of Katie Wei and Cetera who suffered investment losses to contact the firm immediately at 1-888-885-7162 .
Recently two investors have filed a FINRA arbitration claim against Cetera Investment Services on behalf of two investors seeking to recover $300,000 in damages, in connection with being recommended to invest in unsuitable and illiquid alternative investments by their financial advisor Katie Wei a/k/a Lanting Wei (CRD# 6242083).
According to the comprehensive claim filed by Haselkorn & Thibaut, the customers sought low-risk investments to preserve their retirement savings and generate steady income. These investors, like many retirees and pre-retirees, were looking for conservative investment options that would protect their hard-earned savings while providing reliable returns to support their retirement lifestyle.
However, Katie Wei and Cetera recommended speculative alternative investments while presenting them as safe, income-producing investments suitable for conservative investors. This recommendation strategy appears to have been inconsistent with the investors’ clearly stated conservative investment objectives and their need for liquidity and income generation.
Despite the investors’ conservative objectives and lack of experience with private placements, Cetera recommended over $300,000 in alternative investments that were unsuitable for their investment profile. These investments included:
- NorthStar Healthcare – A healthcare-focused real estate investment trust
- CIM Real Estate Finance Trust – A commercial real estate finance company
- Peakstone Realty Trust (formerly known as Griffin Realty Trust) – A real estate investment trust
The suitability concerns are particularly significant given that these alternative investments typically involve higher risks, longer lock-up periods, and limited liquidity compared to traditional securities. For investors seeking capital preservation and regular income, such investments may not align with their financial goals and risk tolerance.
Haselkorn & Thibaut’s thorough investigation found that Cetera failed to conduct the reasonable due diligence required on these alternative investments before recommending them to clients. This failure to perform adequate due diligence is a serious concern in the securities industry, as broker-dealers have a fundamental obligation to understand the investments they recommend and ensure they are suitable for their clients.
The consequences of these unsuitable recommendations have been severe. These alternative investments have since suspended dividends and lost significant value, leaving the investors with illiquid assets that do not meet their stated income or liquidity needs. The investors now face the prospect of being unable to access their funds when needed and are no longer receiving the income they were promised and required for their retirement planning.
This case highlights important issues in the alternative investment space, where complex products are sometimes marketed to retail investors without adequate disclosure of risks or proper suitability analysis. Broker-dealers have a fiduciary duty to recommend only suitable investments and to conduct thorough due diligence on products they offer to clients.
Customers of Katie Wei a/k/a Lanting Wei, or any investor who suffered losses in alternative investments at Cetera Investment Services, should be aware that they may have legal recourse available. Securities laws provide protections for investors who receive unsuitable investment recommendations or who are victims of inadequate due diligence by their broker-dealers.
Our experienced securities attorneys at Haselkorn & Thibaut are conducting a comprehensive investigation into these matters and similar cases involving alternative investment losses. We have extensive experience in securities arbitration and have successfully recovered millions of dollars for investors who have been victims of unsuitable investment recommendations, breach of fiduciary duty, and other securities violations.
Time is of the essence in securities cases, as there are strict time limits for filing claims under securities laws. Investors who believe they may have been victims of unsuitable investment recommendations should act quickly to preserve their rights and maximize their chances of recovery.
If you were a client of Katie Wei or Cetera Investment Services and suffered losses in alternative investments, you may be entitled to compensation. Our attorneys will review your case at no charge and can help you understand your legal options.
Contact Haselkorn & Thibaut today at 1-888-885-7162 for a free, confidential consultation regarding your potential securities claim. Our experienced team is ready to help you navigate the complex world of securities law and fight for the compensation you deserve. Don’t let time limits prevent you from seeking justice – call now to protect your rights and explore your options for recovery.
Haselkorn & Thibaut – Fighting for investors’ rights and holding the securities industry accountable. Call 1-888-885-7162 today.
