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

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