Our firm is investigating LPL Financial broker and investment adviser Shaun B. Floresca (CRD# 4758697) of Chicago, Illinois for potential investment-related misconduct.
Financial Advisor’s Career History
Shaun B. Floresca has been registered in the securities industry since 2004. He is currently a General Securities Representative and investment adviser representative with LPL Financial LLC (CRD# 6413), working from a branch office at 11545 W. Touhy Ave., Chicago, Illinois, while the firm’s main office is in Fort Mill, South Carolina.
Over the course of his career, Floresca has been registered with the following broker-dealers and investment advisory firms:
- LPL Financial LLC, Fort Mill, SC / Chicago, IL (Broker and Investment Adviser Representative, 11/2012–present)
- CUNA Brokerage Services, Inc., Chicago, IL and Waverly, IA (Broker and Investment Adviser Representative, 08/2009–11/2012)
- Chase Investment Services Corp., Niles, IL (Broker and Investment Adviser Representative, 05/2006–07/2009)
- MML Investors Services, Inc., Springfield, MA (Broker, 07/2005–03/2006)
- Merrill Lynch, Pierce, Fenner & Smith Incorporated, New York, NY and Rockford, IL (Broker and Investment Adviser Representative, 03/2005–06/2005)
- Banc One Securities Corporation, Chicago, IL (Broker, 03/2004–10/2004)
In addition to his brokerage and advisory work, Floresca has reported other business activities, including working with a credit union investment program, insurance-related business through independent marketing organizations, and a small real-estate rental activity in Chicago.
Shaun B. Floresca Fraud Allegations and Investor Complaints Explained
According to FINRA’s BrokerCheck report, Shaun B. Floresca has been the subject of multiple customer disputes and a civil judgment/lien.
The customer disputes center on recommendations of real estate securities made around 2014 that customers later alleged were inappropriate for their investment objectives and risk tolerance—classic allegations of unsuitable investments in alternative or illiquid products.
Customer Dispute – FINRA Arbitration Case No. 23-00267
- Firm Involved: LPL Financial LLC
- Product Type: Real estate security
- Allegations: The customer alleged that an investment made in June 2014 was inconsistent with the customer’s investment objectives and risk tolerance.
- Alleged Damages: Approximately $85,000
- Forum: FINRA arbitration, Case No. 23-00267
- Filing Date: February 1, 2023
- Date Complaint Received by Firm: February 2, 2023
- Resolution: Settled on May 25, 2023
- Settlement Amount: $35,000 (firm-paid; no contribution reported by Floresca)
- Status: Final – customer dispute settled
Floresca denies any wrongdoing and states that he provided “excellent, tailored service,” asserting that LPL elected to settle for business reasons and that he contributed no personal funds toward the settlement.
Customer Dispute – FINRA Arbitration Case No. 24-00006
- Firm Involved: LPL Financial LLC
- Product Type: Real estate security
- Allegations: The customer alleged that an investment made in 2014 was unsuitable given the client’s risk profile and investment goals.
- Alleged Damages: Not precisely quantified, but reported as more than $5,000
- Forum: FINRA arbitration, Case No. 24-00006
- Filing Date: December 29, 2023
- Date Complaint Received by Firm: January 2, 2024
- Resolution: Settled on May 6, 2025
- Settlement Amount: $35,000 (firm-paid; no contribution reported by Floresca)
- Status: Final – customer dispute settled
In his statement, Floresca again denies wrongdoing, asserts that risks, features, and liquidity restrictions of the recommended investments were fully discussed and documented through disclosure forms, and notes that he is not personally named in the arbitration but intends to assist LPL in defending the matter.
Civil Judgment / Lien Disclosure
- Type of Event: Civil judgment/lien
- Amount: $3,728.47
- Holder: 6957 N Ashland Condo Association
- Court: Civil Law Magistrate – Chicago, Cook County, Illinois
- Date Filed: February 26, 2008
- Status: Reported as outstanding at the time of the most recent BrokerCheck report
- Docket/Case No.: 07M1730082
While the judgment/lien disclosure is not directly related to investment recommendations, it may raise questions about financial responsibility and overall risk management practices.
Summary of FINRA Disclosures for Shaun B. Floresca
- Two customer disputes alleging unsuitable real estate security recommendations dating back to 2014, both resolved through FINRA arbitration settlements of $35,000 each.
- One outstanding civil judgment/lien related to a condominium association in Cook County, Illinois.
Investors who believe they lost money because of alternative or real estate securities recommended by Floresca—or any broker—should understand that real estate programs, non-traded REITs, and other complex products often involve higher fees, limited liquidity, and greater risk than traditional stocks and bonds. When such products are recommended to conservative or income-oriented investors without adequate risk disclosure, the recommendations may violate industry suitability and “know your customer” standards and expose the firm to liability in FINRA arbitration.
To obtain a copy of Shaun B. Floresca’s FINRA BrokerCheck report, visit this link
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2111 (Suitability) requires brokers to have a reasonable basis to believe that any recommended security or strategy is suitable for a customer based on that customer’s investment profile, including risk tolerance, time horizon, financial situation, and liquidity needs. In the Floresca disputes, customers alleged that a 2014 real estate investment did not fit their objectives or risk tolerance; arbitrators in such cases typically examine whether the broker performed adequate due diligence on the real estate product, explained its risks and illiquidity, and ensured the recommendation was not too risky or concentrated for the client’s profile.
FINRA Rule 2090 (Know Your Customer) requires firms and their associated persons to use reasonable diligence to know the essential facts about every customer at account opening and on an ongoing basis, including financial status, investment experience, and objectives. When a customer later claims that an illiquid real estate security was inappropriate, arbitrators often ask whether the broker obtained and updated accurate information about the client’s income, net worth, risk tolerance, and need for liquidity and whether that information was considered before recommending the 2014 real estate investment at issue in the Floresca arbitrations.
FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) is a broad ethics rule requiring firms and brokers to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business. Even when specific suitability or “know your customer” violations are contested, regulators and arbitrators may look to Rule 2010 when brokers fail to treat customers fairly—for example, by recommending complex, high-commission real estate products to conservative investors without fully explaining the risks and liquidity constraints, or by failing to respond appropriately when clients raise concerns about performance or risk.
For over 45 years, Robert Wayne Pearce has helped investors recover losses caused by broker fraud, negligence, and unsuitable recommendations. His firm, The Law Offices of Robert Wayne Pearce, P.A., represents clients nationwide on a no-recovery, no-fee basis. Call (800) 732-2889 or email pearce@rwpearce.com for a free case review with an experienced securities attorney.
