SII Investments faces charges of dishonest and unethical conduct, along with failure to supervise. The case marks the latest compliance snafu for one of the four independent broker-dealers whose assets were recently purchased by LPL Financial.

SII sidestepped its own policies and Massachusetts rules for the past six years through “systemic inflation” of its clients’ liquid assets in sales of nontraded REITs, state regulators announced last week. Investigators say many of the 93 transactions worth $4.7 million violated limitations on the products.

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