• March 15, 2024
• LPL Financial

Robert Earls, Jr. (CRD#: 1369915) is a previously registered Financial Advisor with LPL Financial, LLC in Roanoke, Virginia. 

Broker’s Background

Robert Earls, Jr.  entered the securities industry in 1985 and has worked for a number of brokerage firms, including Royal Alliance Associates, Inc., Uvest Investment Services, and most recently, LPL Financial, LLC.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in February and March 2024, Robert Earls, Jr. has been accused by three separate clients of stealing money from clients of LPL Financial:

 

• March 8, 2024—” Customer has worked with advisor since October 2021. Allegations are about funds withdrawn in October 2023 that were not returned to customer.” Alleged damages are $20,000.

 

• February 9, 2024—” From approximately June 2010 through February 2023, Ms. [REDACTED] provided funds to the advisor which she believed were being invested in outside investment accounts but no such accounts exist at LPL.” Alleged damages are $300,000.

 

• February 7, 2024—” From 2015 through 2024, customer alleges that advisor misappropriated funds.” Alleged damages are unspecified.

 

For a copy of Robert Earls, Jr.’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Broker theft is a significant problem in the financial services industry.  Brokerage firms are obligated to act as fiduciaries to their customers and safeguard assets.  Brokerage firms are required to supervise their Financial Advisors and ensure that they are both making appropriate recommendations and servicing customer accounts in an ethical way.  To the extent a Financial Advisor steals money from a client, the employing brokerage firm may be legally responsible. 

 

Financial advisors also 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.

 

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

 

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

 

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

 

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.