FINRA Suspends Former LPL Advisor Who Promised Client “Plenty of Money”

Posted on November 10th, 2022 at 2:11 PM
FINRA Suspends Former LPL Advisor Who Promised Client “Plenty of Money”

From the Desk of Jim Eccleston at Eccleston Law.

The Financial Industry Regulatory Authority (FINRA) has issued a three-month suspension and $10,000 fine to a former LPL advisor who allegedly promised to double a client’s investment by improperly texting the client from a personal phone.

The former advisor, Dennis Karjala, was terminated from LPL in October 2021 over similar allegations. Karjala accepted FINRA’s sanctions without admitting or denying any investigatory findings, according to the settlement letter. According to FINRA, Karjala improperly messaged a client in August 2021 and misrepresented the investment’s fees and expected performance. Specifically, Karjala informed the client that a mutual fund only charged an upfront fee and that the client had “already lost 30%” by holding cash, according to FINRA.

However, the mutual fund additionally charged “ongoing fees” and Karjala failed to provide any basis for the 30% loss calculation. Furthermore, Karjala also claimed that he was “certain” the client would make “plenty of money” before retirement and that the client’s investment should “double”. According to FINRA, “These statements were false, exaggerated, unwarranted, promissory and/or misleading.”

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, finra, lpl

Return to Archive

TESTIMONIALS

Previous
Next

Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.

LATEST NEWS AND ARTICLES

October 8, 2025
Northern Trust Sues Former Advisor for Alleged Fraud and Breach of Fiduciary Duty

According to ThinkAdvisor, Northern Trust Company has filed suit against former wealth management relationship advisor Christopher Walters, alleging that he engaged in “blatant fraud” and breached his fiduciary duty to both the firm and a longtime client.

 

October 7, 2025
Tricolor Bankruptcy Sparks DOJ Probe and Distress in Subprime Auto Loan Market

Tricolor Holdings, a subprime auto lender that combined used-car sales with high-interest financing for borrowers with limited or no credit history, has collapsed into bankruptcy amid a federal investigation into alleged fraud.

October 6, 2025
Judge Allows Widow's $8 Million FINRA Arbitration Claim Against JPMorgan to Proceed

JPMorgan Chase & Co. failed in its effort to block an 85-year-old widow from pursuing claims in FINRA arbitration over allegations that the bank failed to prevent her son from siphoning more than $8 million from her accounts.