Lincoln Investment (“Lincoln”) (CRD# 519) has faced numerous complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors. These documented violations may have directly impacted your investment account if you were a Lincoln Investment client. If you’ve lost money due to misconduct, negligence, or unsuitable investment recommendations, you may be entitled to recover those losses through legal action.
The FINRA arbitration process allows investors to pursue claims against broker-dealers even when court access is restricted by arbitration agreements. At the Law Offices of Robert Wayne Pearce, we have investigated Lincoln Investment’s regulatory and customer complaints extensively, and we have represented numerous 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 Investment, you should not wait until it’s too late to file. Time limits apply to securities arbitration claims, and evidence becomes harder to gather as time passes. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations to evaluate your potential case.
Can I Sue Lincoln Investment?
Yes, you can sue Lincoln Investment, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. If you’ve lost money caused by Lincoln investment and/or its employees’ misconduct, FINRA arbitration provides a viable path to recovery because it was specifically designed to handle investor-broker disputes efficiently.
Attorney Robert Wayne Pearce has extensive experience in FINRA arbitration proceedings and knows how to not only sue Lincoln Investment in FINRA arbitration, but WIN that arbitration. The specific supervisory failures and regulatory violations documented on this page strengthen investor claims because they demonstrate a pattern of inadequate oversight that may have directly contributed to your losses.
How to Sue Lincoln Investment for Investment Losses
What Can I Do If I Lost Money at Lincoln Investment?
If you lost money at Lincoln Investment, you can file a claim through FINRA arbitration—a streamlined legal process specifically designed for resolving investment disputes. FINRA arbitration is binding and occurs outside traditional court systems, which means it typically proceeds faster than court litigation. Most investor-broker agreements include arbitration clauses that require disputes to be resolved this way, but this should not discourage you because arbitration can be equally effective for recovering losses.
The key to a successful claim is connecting your losses to specific misconduct. Lincoln Investment has been repeatedly sanctioned for supervisory failures including: failing to monitor variable annuity exchanges (missing over half of all exchanges in their surveillance), cheating customers out of sales charge waivers on mutual funds, and failing to protect customer assets from impostor theft. These documented supervisory lapses created an environment where individual broker misconduct could flourish unchecked, potentially leading to unsuitable recommendations, excessive trading, unauthorized transactions, or misrepresentation of investment risks in your account.
Your claim may involve demonstrating how these systemic failures at Lincoln Investment enabled your financial advisor to engage in negligent or fraudulent behavior that caused your losses. For example, if your advisor executed excessive variable annuity exchanges without proper review, Lincoln’s admitted failure to track “non-Lincoln-to-Lincoln” exchanges would support your claim that inadequate supervision contributed to your harm. Similarly, if you were sold Class B or C mutual fund shares when you qualified for Class A shares with waived sales charges, Lincoln’s documented failure to enforce sales charge waiver procedures becomes direct evidence supporting your case.
Who Can Help Me Sue Lincoln Investment?
An experienced securities attorney who specializes in FINRA arbitration can help you build and present your case effectively. At the Law Offices of Robert Wayne Pearce, P.A., we have handled numerous cases involving independent broker-dealers like Lincoln Investment. Our firm understands the specific supervisory weaknesses inherent in the independent broker-dealer business model, including the remote oversight issues and franchise-style operations that contributed to Lincoln’s repeated regulatory violations.
We can evaluate whether your losses resulted from broker misconduct, unsuitable investment recommendations, churning, failure to supervise, or breach of fiduciary duty. Because we have investigated Lincoln Investment’s regulatory history and understand their documented compliance failures, we can connect those systemic problems to your individual situation and present a compelling case to FINRA arbitrators.
What is Lincoln Investment?
Lincoln Investment (CRD# 519) has been registered with the SEC and FINRA as a securities broker-dealer since 1969. The company is controlled by the Lincoln Investment Group Inc. and headquartered in Fort Washington, Pennsylvania. Its independent broker-dealer Business Model has grown through acquisition and organic development of primarily one and two person registered representative offices supervised remotely. Today there are over 400 Lincoln Investment branch offices with over 1400 registered representatives in every state. It is now one of the 50 largest independent broker-dealer and investment advisory firms in the United States.
Why Does Lincoln Investment Have So Many Bad Reviews and Customer Complaints?
Lincoln Investment’s high number of complaints stems primarily from its independent broker-dealer business model, which prioritizes growth and low overhead costs over investor protection. Unlike traditional full-service brokerages with on-site managers, Lincoln operates using a franchise-style system where individual advisors run separate businesses under the Lincoln brand. This structure creates significant gaps in oversight because the advisors are independent contractors, not employees, which limits Lincoln’s day-to-day control over their activities.
Supervision occurs remotely through Offices of Supervisory Jurisdiction (OSJs), which are themselves run by independent contractors managing their own businesses. These OSJ managers cannot provide real-time oversight of daily transactions, new accounts, client correspondence, or cash transfers because they’re juggling multiple responsibilities across geographically distant locations. As a result, there’s often no immediate review when an advisor opens a new account, executes a questionable trade, or communicates misleading information to a client.
This lax supervision creates an environment where problems go undetected for extended periods. Advisors may forge signatures, falsify customer information to justify unsuitable investments, or use misleading sales materials—all without anyone at Lincoln catching it until much later (sometimes only during annual compliance audits). The North American Securities Administrators Association (NASAA) has documented that independent broker-dealers like Lincoln show more instances of sales abuse and investor losses compared to traditional firms with on-site supervision, precisely because of these structural oversight deficiencies.
Lincoln Investment Has Many Different Regulatory Problems
Lincoln Investment’s growth has not been without consequences. There have been approximately 7 Federal, 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 scores of customer complaints filed against Lincoln Investment 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 Investment is a repeat offender: there are over 6 FINRA reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A BRIEF OVERVIEW OF SOME OF THE REGULATORY PROBLEMS LINCOLN INVESTMENT HAS FACED OVER THE YEARS
Lincoln Investment has been repeatedly censured, warned, and fined 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:
FINRA Sanctioned Lincoln Investment For Failing To Protect Customers Assets
FINRA investigated and discovered that Lincoln Investment’s supervisory system and written supervisory procedures (WSPs) were not reasonably designed to achieve compliance with the firm’s obligation to monitor transmittals of customer funds, and, as a result, in the fall of 2017, impostors stole or attempted to steal customer funds by requesting transfers from the accounts of two Lincoln customers. By virtue of the foregoing, Lincoln Investment violated FINRA Rules 3110 and 2010 and FINRA imposed a censure and a fine of $35,000.
FINRA Sanctioned Lincoln Investment For Not Monitoring Variable Annuity Sales Abuse
Lincoln Investment sold a significant amount of variable annuities during the relevant period. In 2017, for example, approximately 20 percent of the Firm’s revenue came from variable annuity sales.
Variable annuities are contracts between an investor and an issuing company, whereby an issuing company promises to make periodic payments to the investor or a beneficiary designated by the investor. Variable annuities allow customers to choose from an array of contract features. For example, variable annuities may offer various types of optional riders, and can subject investors to a variety of fees or charges, including surrender charges, which investors may owe if they withdraw money from the annuity before a specified period.
During a routine examination of Lincoln Investment in 2017, FINRA staff determined that Lincoln Investment failed to implement reasonably designed surveillance procedures to monitor its registered representatives’ rates of effecting variable annuity exchanges. Specifically, FINRA staff discovered that the Lincoln Investment only tracked exchanges where Lincoln Investment was the broker of record for the variable annuity that was being exchanged, or so-called “Lincoln-to-Lincoln” exchanges. In so doing, Lincoln Investment did not track variable annuity exchanges where Lincoln Investment was not the broker of record for the variable annuity that was being exchanged, or so-called “non-Lincoln-to-Lincoln” exchanges. During the relevant period, more than half of the approximately 2,800 variable annuity exchanges effected by the Lincoln Investment’s representatives were “non-Lincoln-to-Lincoln” exchanges and, thus, excluded from Lincoln Investments surveillance report.
As a result of its investigation, FINRA concluded that Lincoln Investment failed to implement reasonably-designed surveillance procedures to monitor its registered representatives’ rates of effecting variable annuity exchanges, in violation of FINRA Rules 2330(d), 3110, and 2010 and imposed a censure and a $35,000 fine upon the firm.
FINRA Sanctioned Lincoln Investment For Cheating Customers Out Of Sales Charge Waivers
FINRA investigated and discovered during the relevant period that Lincoln Investment disadvantaged certain retirement plan and charitable organization customers who were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge (“Eligible Customers”). These Eligible Customers were instead sold Class A shares with a front-end sales charge or Class B or C shares with back-end sales charges and higher ongoing fees and expenses. During this period, Lincoln Investment failed to establish and maintain a supervisory system and written supervisory procedures reasonably designed to ensure that Eligible Customers who purchased mutual fund shares received the benefit of applicable sales charge waivers.
As a result, Lincoln Investment violated NASD Conduct Rule 3010, FINRA Rule 3110, and FINRA Rule 2010. As a result of this misconduct, FINRA imposed a censure and ordered Lincoln Investment to conduct the remediation and make restitution to the customers cheated out of the sales charge waivers and/or charged higher backend sales charges and higher ongoing fees and expenses in other classes of mutual funds.
FINRA Sanctioned Lincoln Investment For Not Reviewing Reports Produced By Its Advisors
During an audit of Lincoln Investment FINRA discovered that the brokerage firm failed to enforce a supervisory system and written supervisory procedures reasonably designed to ensure an effective review of consolidated reports produced by registered representatives and provided to customers. As a result, Lincoln Investment violated NASD Conduct Rule 3010 and FINRA Rule 2010 and censured the firm and fined it $75,000.
FINRA Sanctioned Lincoln Investment For Mutual Fund Sales Abuse
Some mutual fund companies sell shares that charge front-end loads. These mutual fund companies typically offer discounts at certain pre-determined levels of investments, which are called “breakpoints.” These discounts are commonly referred to as “breakpoint discounts.”
FINRA required certain member firms that sold front-end load mutual funds to conduct a self-assessment of breakpoint compliance (the “Self-Assessment”)- FINRA provided the firms with instructions and interpretative guidance on how to complete the Self-Assessment, report the results, and make refunds to customers who were denied “breakpoint discounts.”
FINRA required Lincoln Investment to provide refunds expeditiously in those cases where it was aware that customers had not received the appropriate breakpoint discount In its review of Lincoln Investment’s refunds, FINRA found that the firm failed to provide timely refunds in 398 of 423 instances.
By reason of the aforementioned conduct, Lincoln Investment violated NASD Conduct Rule 2110, and was censured and fined $15,000.
*Above are only some of the regulatory disciplinary actions filed against Lincoln Investment by FINRA. There are at least two more SEC, FINRA, NASSA and/or other state securities regulator investigations and enforcement actions on BrokerCheck as regulatory disciplinary proceeding disclosures.
How to File an Official Complaint Against Lincoln Investment or One of Its Brokers with FINRA
If you believe a Lincoln Investment broker or the firm itself has engaged in misconduct that caused your investment losses, you can file a formal complaint with FINRA. Visit FINRA’s online complaint center or call their investor helpline to initiate the process. When filing, include detailed documentation of your losses, the specific transactions in question, communications with your advisor, and any evidence of misrepresentation or unsuitable recommendations.
However, filing a complaint with FINRA does not automatically result in compensation for your losses. FINRA will investigate the complaint and may take disciplinary action against the broker or firm if they find violations, but recovering your money typically requires filing a separate arbitration claim. Many investors make the mistake of thinking a FINRA complaint alone will resolve their financial losses, when in reality it’s primarily a regulatory enforcement mechanism.
How The Law Offices of Robert Wayne Pearce, P.A. Can Help You Recover Losses at Lincoln Investment
The Law Offices of Robert Wayne Pearce, P.A. guides investors through both the complaint process and the subsequent arbitration proceedings required to actually recover financial losses. With over 45 years of experience in securities arbitration, Attorney Pearce understands how to build compelling cases against independent broker-dealers like Lincoln Investment by connecting documented supervisory failures to individual client harm.
Our firm has recovered more than $175 million for defrauded investors through FINRA arbitration and litigation. We handle the entire process: gathering evidence, identifying the specific regulatory violations that enabled your losses, preparing and filing your arbitration claim, and presenting your case to FINRA arbitrators. Because we’ve studied Lincoln Investment’s regulatory history and understand their compliance weaknesses, we can effectively demonstrate how their systemic failures created the conditions for your financial advisor’s misconduct.
Attorney Pearce offers free consultations to evaluate whether you have a viable claim against Lincoln Investment. During this consultation, we’ll review your investment history, analyze your losses in relation to Lincoln’s documented violations, and explain your legal options with no obligation.
Did Lincoln Investment 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 Investment 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 Investment without representation with an attorney about their complaints and have their complaints denied.
Consult With An Attorney Who Recovers Investment Losses Caused By Lincoln Investment Today
The securities lawyers at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Lincoln Investment 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.
