As a financial analyst and legal expert with over a decade of experience, I take allegations of unsuitable investment recommendations very seriously. The recent sanction against William Campbell, formerly a broker with David Lerner Associates, raises significant concerns for investors.
According to FINRA, Mr. Campbell recommended that five households, including seniors, invest in high-risk oil and gas limited partnerships that were unsuitable given their low risk tolerance and need for income. One particularly egregious example involved advising an unemployed 28-year-old to invest $100,000 from a personal injury settlement into one of these speculative products. These actions constitute clear violations of FINRA’s suitability rules.
The consequences for Mr. Campbell include:
- A nine-month suspension from associating with any FINRA member firm
- A $10,000 fine
- Disgorgement of the $28,904.40 in commissions he earned
However, the real impact is on the investors who trusted Mr. Campbell with their hard-earned money and financial futures. Between 2011-2022, four investor disputes were filed against him alleging unsuitable recommendations, misrepresentations, and other misconduct involving Energy 11, Energy 12, and SOAEX investments. His former firms paid over $274,000 to settle these claims.
Sadly, Mr. Campbell’s case is not unique. As famed financier Warren Buffett once said, “Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway.” Investors must remain vigilant and thoroughly vet any investment professional and their recommendations.
In fact, a 2020 FINRA study found that 7% of all registered representatives have at least one investor complaint or other disclosures on their record. That’s over 35,000 “bad brokers” who have been sued or sanctioned for misconduct. Investors can and should check a broker’s record using FINRA’s free BrokerCheck tool.
According to a Bloomberg report, the Securities and Exchange Commission (SEC) has found that some investment advisers are defrauding retail investors, highlighting the importance of due diligence when selecting a financial professional. Investors who have fallen victim to investment fraud or bad advice from their financial advisors can seek help from experienced securities attorneys, such as those at Financial Advisor Complaints, to protect their rights and recover their losses.
The Bottom Line for Investors
If you’ve suffered investment losses due to unsuitable recommendations by William Campbell or another financial advisor, don’t wait to take action. Consult with an experienced securities attorney to discuss your legal rights and options. FINRA rules allow victimized investors to file arbitration claims against the advisors and firms responsible to recover damages.
The key is to act promptly, as strict time limits apply to these claims. With the right legal counsel, you can hold bad actors accountable and work to restore your financial well-being. No investor should have to pay the price for a broker’s unethical and unlawful conduct.