- December 17, 2019
- Lincoln Investment Planning
Lester W. Burroughs (CRD # 1413972) was a former Financial Advisor at Lincoln Investment in Torrington, CT. Lester Burroughs previously worked at Crown Capital Securities, Brookstone Securities, Woodbury Financial Services, Tower Square Securities, Main Street Management Company and Pruco Securities Corporation.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on December 4, 2019, the United States Securities and Exchange Commission initiated a securities fraud enforcement action against Lester Burroughs alleging that he “engaged in a scheme to defraud retail investors from at least November 2012 to at least January 2019. Burroughs misappropriated advisory client money for his own personal use, created and sold fictitious investment products to clients, and engaged in a Ponzi-like scheme by paying back some advisory clients with money stolen from other advisory clients. Burroughs defrauded at least five clients and has failed to return at least $560,000 to three of his clients.”
For a copy of Lester Burroughs’ CRD, click https://brokercheck.finra.org/individual/summary/1413972.
On December 6, 2019, Lester Burroughs was “discharged” from Lincoln Investment Planning, LLC relating to these allegations.
In addition, Lester Burroughs has been the subject of fourteen customer complaints over the years, including the following allegations:
• September 2009 – “THE CUSTOMERS ALLEGED THAT THE REPRESENTATIVE ENGAGED IN IMPROPER SALES PRACTICES AND SPECULATIVE RECOMMENDATIONS INCONSISTENT WITH THEIR INVESTMENT OBJECTIVES AND RISK TOLERANCE, AND THAT HE FAILED TO PLACE STOP LOSS ORDERS.” The matter settled for $15,000.
• October 2002 – “REGARDING THE 1991 PURCHASE OF A VARIABLE LIFE INSURANCE PRODUCTS CLIENT ALLEGED MISREPRESENTATION CONCERNING ABBREVIATED PAYMENT.” The matter settled for $30,475.06.
• October 1996 – “REGARDING THE 1991 PURCHASE OF A VARIABLE APPRECIABLE LIFE (VAL) INSURANCE POLICY. THE CLIENT ALLEGED MISREPRESENTATION CONCERNING THE FUNDING PROPOSAL FOR THE POLICY AND TWO EXISTING POLICIES.” The matter settled for $88,890.55.
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
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