Lincoln Financial Securities Corporation (“Lincoln Financial Securities”) (CRD#3870) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Lincoln Financial Securities, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against Lincoln Financial Securities, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Lincoln Financial Securities?
If you’ve lost money caused by Lincoln Financial Securities and/or its employees’ misconduct then the answer is, YES, you can sue Lincoln Financial Securities, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Lincoln Financial Securities in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Lincoln Financial Securities is to call Attorney Pearce at our office at 800-732-2889.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
What is Lincoln Financial Securities?
Lincoln Financial Securities (CRD#3870) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Lincoln Financial Securities is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Lincoln Financial Securities Has Many Different Regulatory Problems
Lincoln Financial Securities’ rapid growth has not been without consequences. There have been approximately 21 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been customer complaints filed against Lincoln Financial Securities for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Lincoln Financial Securities is a repeat offender: there are over 21 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Lincoln Financial Securities Has Faced Over the Years*
Lincoln Financial Securities has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
Virginia Division of Securities Fines Lincoln Financial Securities for Failing to Supervise Former Registered Representative
Brief Overview: The Viriginia Division of Securities alleged that Lincoln Financial Services, which neither admitted nor denied the allegations, failed to adequately supervise and monitor one of its former registered representatives. Specifically, the Division alleged that the firm failed to supervise the subject representative who allegedly defrauded clients, friends, and elderly residents of the community by selling them bogus investment products. The division also alleged that an independent verification may have prevented the registered representative from committing improper conduct. As a result, the firm was fined $10,000.
New Hampshire Bureau of Securities Regulation Fines and Orders Lincoln Financial Securities to Cease-and-Desist for Unlicensed Transactions
Brief Overview: The New Hampshire Bureau of Securities Regulation initiated an investigation into Lincoln Financial Securities and alleged that 22 home office employees traded their own accounts and family member and friends’ accounts without a New Hampshire license. The Bureau found that such FINRA-licensed employees failed to maintain the appropriate state licensing for transactions they conducted. As a result, the firm was ordered to cease-and-desist and fined $55,000.
FINRA Censured and Fined Lincoln Financial Securities for Failing to Detect Ponzi Scheme
Brief Overview: Without admitting or denying the findings, Lincoln Financial Securities consented to the described sanctions and to the entry of FINRA findings that the firm failed to establish and maintain a supervisory system and enforce written supervisory procedures reasonably designed to supervise its registered representatives and otherwise detect and prevent a specific registered representative’s fraudulent solicitation and sale of investments in a purported bond fund. FINRA alleged the firm lacked an effective system for responding to certain red flags of potential misconduct by its representatives. As a result of those supervisory deficiencies, the firm failed to detect and prevent a Ponzi scheme operated by the registered representative. Lincoln Financial Securities was censured, fined $175,000, and paid $5.63 million in restitution to investors.
FINRA Censures and Fines Lincoln Financial Securities for Failing to Adequately Protect Customer Records and Information
Brief Overview: Without admitting or denying the findings, Lincoln Financial Securities consented to the described sanctions and to the entry of FINRA findings that the firm failed to adequately protect customer records and information in the firm’s client portfolio management system and allowed certain employees to access its web-based customer account system by using shared log-on credentials without establishing adequate procedures and without controlling or monitoring who had access to the common log-on credentials. Further, the firm failed to require security software and anti-virus protection and to audit computers owned by its registered representatives and used in connection with the applicant’s securities business. Auditors are now required to inspect office computers for compliance with the data security policy, and OSJ managers are required to inspect computers during supervisory visits. The firm was censured and fined $450,000.
New Hampshire Bureau of Securities Regulation Censures Lincoln Financial Securities for Mismarked Order Tickets
Brief Overview: The New Hampshire Bureau of Securities Regulation initiated an investigation that revealed that registered representative inaccurately marked several order tickets relating to one customer account. Specifically, the customer purchased stocks through the broker-dealer’s agent and some of the confirmations of transactions were mismarked as solicited when they should have been marked unsolicited. Also, a number of the confirmations of transactions marked unsolicited should have been marked solicited. Further the confirmation records were not properly kept. As a result, the firm was censured and ordered to pay costs and restitution.
*Above are only some of the regulatory disciplinary actions filed against Lincoln Financial Securities by FINRA. NASAA and other state securities regulator investigations and enforcement actions account for another 16 BrokerCheck disclosures.
Lincoln Financial Securities Customer Complaints
There have been scores of customer complaints filed against Lincoln Financial Securities stockbrokers and investment advisors over the years. We have launched many investigations of current and former Lincoln Financial Securities advisors:
- Barry Horowitz of Lincoln Financial Securities Corporation
- Alexander Kolton Formerly With Lincoln Financial Securities
- Ronald Strasburg of Lincoln Financial Securities
- Michael Adams of Lincoln Financial Securities
- Christopher Harpin of Lincoln Financial Securities
- Gerard Dougherty of Lincoln Financial Securities
- David Poulnot of Lincoln Financial Securities Corporation
- John Venetos formerly with Lincoln Financial Securities Corporation
- Thomas Donahue of Lincoln Financial Securities Corporation
- Johnathan Pulleyn of Lincoln Financial Securities Corporation
If you have lost money investing with any of these Lincoln Financial Securities advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Lincoln Financial Securities Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Lincoln Financial Securities Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Lincoln Financial Securities is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Lincoln Financial Securities without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By Lincoln Financial Securities Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Lincoln Financial Securities cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
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