Adam Lunceford Allegedly Over-Concentrates A Customer’s Portfolio In Unsuitable Non-Traded REITs

Oakes & Fosher is presently investigating the possible misconduct of securities broker Adam Lunceford. According to his publicly available FINRA BrokerCheck report, Adam Lunceford has been the subject of a customer dispute.

Adam Lunceford is presently working as an Arizona based securities broker. He has worked in the securities industry for fifteen years. During his career, he was registered with five different securities firms.

His Registrations

• Edward Jones (2003-2006)


• Merrill Lynch (2006-2010)


• LPL Financial (2010)


• Securities Service Network (2010-2013)


• LPL Financial (2013-Present)

The Allegations

In June 2019, a customer alleged that Adam Lunceford disregarded his previously stated modest investment objectives by recommending that he invest half of his portfolio in illiquid non-traded REITs. This case is currently pending. The customer is seeking $250,000 in damages.

What Are Non-Traded REITs?

Non-traded REITs, or real estate investment trusts, are privately traded securities that are not sold on any public securities exchanges. Due to their private nature, there is a significant lack of oversight for these products. Many less than scrupulous securities brokers use this fact to their advantage. This is because it gives them the opportunity to misrepresent these products as safe and consistently lucrative, when, in fact, just the opposite is true. Non-traded REITs are risky and illiquid securities that are highly unsuitable for investors with modest investment objectives and lower risk tolerances. Despite this fact, many securities brokers continue to pitch these products to customers because of the incredibly high commissions they receive when executing the transactions. The upfront commissions for a non-traded REIT transaction can lower an investor's principal of as much as ten percent. These commissions compounded with other upfront fees can drain an investor's principal of as much as 17 percent before the investor's money is even put toward the investment. When an investor's principal is lowered that significantly right off the bat, it becomes near impossible for them to see any investment returns under anything other than booming market conditions.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Adam Lunceford, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.