Eight Hearings Scheduled for SECU Brokerage Case
On Feb. 21, a Financial Industry Regulatory Authority panel will hear the matter between SECU Brokerage, LPL Financial Corp. an investment adviser and a trust that claims its deceased client suffered losses after an alleged failed real estate investment.
The first FINRA arbitration hearing will take place in San Diego, according to Investors Arbitration Specialists, the firm that represents the trust of Helen Cohen, who bought an investment account in September 2005 from an adviser.
The adviser worked with the defunct, credit union-owned broker dealer XCU Capital Corp., which was based in San Diego and bought by LPL Financial in September 2007. SECU acquired XCU's corporate brokerage shell in January 2008 after all accounts had been transferred to LPL. The brokerage charter was moved to North Carolina and renamed SECU Brokerage Services in May 2008.
According to Cohen's trust, she allegedly lost $700,000 through a failed real estate investment, and the trustee filed a claim in 2009 to recover that amount plus $2.6 million in damages. An investment adviser with XCU Capital suggested Cohen buy a real estate investment with a company that owned a Florida apartment complex.
SECU President Jim Blaine said, "It's the long scheduled required mandatory arbitration session under FINRA, usually a panel of three, which hears each side of the argument and renders a binding decision."
Seven more arbitration hearings are scheduled for Feb. 22-25, Feb. 28, and March 1-2.