- August 28, 2023
- LPL Financial
John A. Dougherty (CRD#: 3018615) was a previously registered broker and investment advisor at LPL Financial LLC, in Bluebell, PA.
He entered the securities industry in 1998 and previously worked for LPL Financial LLC; Wells Fargo Clearing Services, LLC; Merrill Lynch, Pierce, Fenner & Smith Incorporated; New England Securities; LPL Financial Corporation; Wachovia Securities, LLC; Morgan Stanley DW Inc.
Current and Past Allegations of Conduct Leading to Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July 2023, LPL Financial LLC discharged John Dougherty for engaging in outside business activity without firm approval and participating in private investments without Firm approval.
In addition, John Dougherty has been the subject of a customer dispute, which includes the following:
- January 2023—“Customer alleges representative recommended a wealth management strategy which was inappropriate for his investment objectives and risk tolerance, and that he allegedly incurred losses as a result of the strategy. Time period: April 2012 to October 2021.” The customer dispute is still pending.
For a copy of John Dougherty’s FINRA BrokerCheck, Click here.
We Help Investors Recover Investment Losses
The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
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