Richard Tulloch Involved in NorthStar REIT Dispute


Richard Tulloch (CRD# 5180553), formerly a broker registered with Avatar Securities, concentrated a customer’s funds in an illiquid REIT, according to an investor dispute. MDF Law is currently investigating the former New York City-based financial professional for similar conduct. If you have concerns about your accounts, we urge you to contact us as soon as possible.

To learn more about the disputes involving Mr. Tulloch, continue reading this post. The information below is sourced from his BrokerCheck profile, a Financial Industry Regulatory Authority (FINRA) record accessed on January 3, 2024. 

NorthStar REIT Allegations Seek $300,000

On October 31, 2023, an investor lodged a dispute alleging that Mr. Tulloch “overly concentrated” their funds in an illiquid NorthStar Healthcare Income real estate investment trust (REIT). In addition, the claimant alleges that he “incorrectly promised” that the product in question “was safe, secure, and would continually return distributions from profit and not return of principal.” The dispute, which remains pending, seeks $300,000 in damages.

Past Disputes Involved Non-Traded REITs

The above-described pending claim is not the only investor dispute in Mr. Tulloch’s professional history. In 2019 and 2020, two parties of investors lodged disputes involving him. One alleged that he inflated the customer’s net worth in order to “to justify concentrated recommendation in non-traded REITS.” The other, meanwhile, alleged that he misrepresented and recommended large concentrations of unsuitable, illiquid REITs. His former member firms settled the disputes for a total of $97,500.

Why Non-Traded REITs Are Risky Investments

A FINRA Investor Alert issued in 2011 warned investors to carefully examine the features and risks of non-traded REITs, like Northstar Healthcare Income, before investing in them. As you may know, non-traded REITs use investor funds to buy and operate real estate properties. In general, investors receive dividends generated by these properties’ income. Unlike publicly traded REITs, non-traded REITs are not traded on any stock exchange. As such, they are typically illiquid investments. They may also be fairly opaque products with few transparency or disclosure requirements; it can be difficult for investors to fully research their risks and features. They may also involve substantial upfront fees, as well as various costs for investors who redeem them early. For these reasons and more, investors should approach them carefully. 

FINRA: Richard Tulloch Last Based in NYC

Richard Tulloch launched his career as a broker in 2006, when he registered with Chase Investment Services in Glenview, Illinois. He left the firm in 2007, and in 2009 he joined Wayne Hummer Investments in Itasca, Illinois. He registered with his most recent member firm, Avatar Securities, in 2020, working out of its New York City office until 2021. He has remained unregistered as a broker since departing Avatar. With 10 years of experience as a broker, he has completed two state securities law exams and four general industry/products exams. 

REIT Complaints? You May Have Recovery Options

Do you have complaints about non-traded REITs or other investments recommended by Richard Tulloch? You have rights as an investor, including the right to file a FINRA arbitration claim to pursue damages. For a free consultation about your options, call MDF Law at 800-767-8040 to chat with our team. Our firm accepts cases on contingency, meaning clients only pay a fee if they win their case. Your time to file a FINRA arbitration claim may be limited, so we encourage you to move quickly. Call MDF Law today.

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