FINRA Fines Wells Unit Over REIT Marketing

Law360, New York (November 22, 2011, 12:14 PM EST) -- The Financial Industry Regulatory Authority fined a Georgia-based Wells Real Estate Funds Inc. affiliate $300,000 for using improper marketing materials in the sale of a nontraded real estate investment trust, FINRA announced Tuesday.

Dealer and underwriter Wells Investment Securities Inc. settled the enforcement proceeding without admitting or denying wrongdoing, FINRA said.

According to the industry organization, Wells Investment made misleading statements from May 2007 to September 2009 that Wells Timberland REIT Inc. was a REIT even though it did not officially qualify for that designation until...
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