LPL Financial recently parted ways with one of its longtime advisors, Philip Joseph Griggs, highlighting major issues that every investor should be aware of before entrusting anyone with their money. According to publicly available records, Philip Griggs (CRD #4440889) was discharged on April 4, 2026, by LPL Financial Corporation after allegedly failing to report serious felony criminal charges and a civil judgment. This event, combined with his public financial disclosures, raises important questions about transparency, regulatory rules, and investor protection in the financial industry.
Trust is the bedrock of the advisor-client relationship. When that trust is broken—even by omission—the consequences can be profound, both for an individual investor and for confidence in the industry as a whole. If you have worked with Philip Griggs or are curious how these matters can impact your portfolio, it pays to understand exactly what happened, what it means for your financial security, and how to properly scrutinize any advisor before making investment decisions.
Recent Developments: The Allegations Against Philip Joseph Griggs
Public records reveal that Philip Joseph Griggs was terminated by LPL Financial due to a significant compliance failure—a failure to report both felony criminal charges and a civil judgment. According to his BrokerCheck disclosure, this was no minor technical issue, but rather a substantial violation of the trust placed in him by both his firm and his clients.
In the regulated world of financial advice, disclosure is not optional. Advisors are required to promptly report any criminal or civil issues to both their employer and to FINRA, the regulatory authority that oversees brokers. Failure to disclose such material events is a clear breach of both regulatory requirements and professional standards, with potential legal implications under federal and industry rules.
Beyond his employment separation, Philip Griggs’ public record discloses three judgment and lien events, which are important red flags for any investor conducting due diligence. The largest of these include:
| Date Filed | Type | Amount | Filing Entity | Jurisdiction |
|---|---|---|---|---|
| September 4, 2025 | Tax Lien | $96,765.47 | IRS | U.S. District Court, Northern District of Texas (Dallas) |
| September 4, 2025 | Tax Lien | $241,636.58 | IRS | U.S. District Court, Northern District of Texas (Dallas) |
Combined, just these two IRS liens total more than $338,000. Tax liens on an advisor’s record are notable and should prompt any investor to consider whether a person unable to resolve their own substantial financial obligations should be trusted with managing client assets. The BrokerCheck report additionally documents a third judgment or lien for which details are also available in public disclosures.
We reviewed Philip Griggs’ BrokerCheck profile on June 18, 2026, and as of that date, he is no longer registered as a broker, with his employment at LPL Financial having ended. This scenario underscores the importance of checking an advisor’s record before and during your relationship with them.
Background: Career History and Professional Licenses
Philip Joseph Griggs has a substantial history in the securities industry, holding numerous important licenses:
- Securities Industry Essentials (SIE)
- Series 7 – General Securities Representative
- Series 24 – General Securities Principal
- Series 63 – Uniform Securities Agent State Law Exam
- Series 65 – Uniform Investment Adviser Law Exam
These credentials qualify advisors for a range of investment roles. Of particular note, the Series 24 allows an individual to supervise other representatives, implying higher responsibility and regulatory expectation. Failure to disclose felony charges as someone with supervisory authority is especially troubling and highlights the heightened duty of transparency.
Throughout his career, Philip Griggs has been affiliated with several well-known broker-dealers, including:
- LPL Financial LLC (registration terminated April 4, 2026)
- Edward Jones
- Hornor, Townsend & Kent, Inc.
- Woodbury Financial Services, Inc.
- Fox & Company Investments Inc.
Based on an industry study by the University of Chicago, about 7% of financial advisors have misconduct records, and those with such histories are five times more likely to be repeat offenders. This data illustrates why investors should always take a proactive approach to background checks. For more tips on checking advisor backgrounds, visit Investopedia’s FINRA BrokerCheck Guide.
The Rules: What Does FINRA Require?
The regulatory framework designed to protect investors is clear and robust. Two Financial Industry Regulatory Authority (FINRA) rules stand out as particularly relevant to the Philip Griggs case:
-
FINRA Rule 1122 — Filing of Misleading Information as to Membership or Registration:
Brokers must not submit incomplete or misleading registration information. They are obligated to update changes to their professional or legal status—such as criminal charges or judgments—promptly and accurately. -
FINRA Rule 2010 — Standards of Commercial Honor and Principles of Trade:
This rule provides a broad ethical framework, requiring brokers to maintain high standards of commercial honor and act according to just and equitable principles. Concealing material events like legal troubles from a firm or regulator falls short of this standard.
Additionally, the SEC’s Regulation Best Interest (Reg BI) took effect in June 2020, requiring broker-dealers and their representatives to always act in the best interests of retail clients. Reg BI imposes obligations for full disclosure, best execution, conflict mitigation, and proper compliance systems. If a broker is facing undisclosed legal or financial problems, investors have a right to be informed—transparency is at the center of regulatory intent.
Investment Fraud, Bad Advice, and Real-World Risks
Unfortunately, the world of financial advising is not immune to fraud or bad advice. Investment fraud can take many forms, including unsuitable recommendations, unauthorized trading, misrepresentation, and outright embezzlement. According to the Financial Industry Regulatory Authority, common consumer complaints involve promises of guaranteed returns, failure to disclose risks, and breaches of fiduciary duty. Bad advice from an advisor with undisclosed financial or legal issues can lead investors into unsuitable or high-cost products, sometimes resulting in substantial losses.
Beyond the personal ramifications for clients, cases like that involving Philip Joseph Griggs erode confidence in the entire investment system. It’s easier than many realize to get drawn in by the veneer of experience and trust implied by an advisor’s professional certifications and long career history. This is why tools like FINRA BrokerCheck and resources such as Financial Advisor Complaints are so important for investors.
Takeaways for Investors: What You Should Do
The immediate outcome for Philip Griggs is the loss of his registration as a broker and the addition of several disclosures to his regulatory record. However, every investor can learn practical lessons from this scenario:
- Always check an advisor’s background through FINRA BrokerCheck for disciplinary actions, judgments, liens, and terminations.
- Don’t dismiss red flags, such as employment separations for cause or significant personal financial troubles—these matter.
- Ask direct
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