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

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

October 29, 2025
FINRA Foundation Study Reveals Alarming Investor Susceptibility to Fraudulent Offers

The FINRA Investor Education Foundation (FINRA Foundation) has released preliminary findings from its upcoming report, Investors in the United States: A Report of the National Financial Capability Study.

October 28, 2025
UBS Seeks Court Order Against $1.4 Billion Florida Advisory Team Over Client Solicitation Allegations

UBS Wealth Management USA has filed a lawsuit and requested a temporary restraining order (TRO) against a $1.4 billion advisory team that recently departed to join Elevation Point, a West Palm Beach-based registered investment advisor launched just 15 months ago.

October 27, 2025
FINRA Panel Orders Charles Schwab to Pay Damages Over Structured Product Losses Sold by Vora Wealth Management

A three-person FINRA arbitration panel ordered Charles Schwab & Co. to pay $165,440 in compensatory damages to a former client of Vora Wealth Management, after losses tied to complex structured products.