The former LPL Financial broker’s customers have alleged unsuitable investment advice
Cory Ryan Burnell hasn’t been a registered broker since July of 2015, but he is still facing complaints lodged with the Financial Industry Regulatory Authority (FINRA) by former clients. In fact, currently there are three pending disputes, with customers seeking damages totaling almost $3 million.
All of the disputes are related to inverse leveraged exchange traded funds, also known as inverse ETFs. ETFs are dependent on the performance of the inverse of whatever index they are designed to track. Because they use short selling techniques, ETFs are not considered a good long-term investment strategy, and they can be volatile. For most investors, especially those with a risk-averse, long-term investing strategy, they are considered unsuitable.
Brokers are required to only make recommendations to their clients based on their investment portfolio, financial situation, goals, and aversion to risk. If they don’t, they violate two FINRA rules: The Know Your Customer (FINRA Rule 2090) and Suitability (FINRA Rule 2111).
In addition to the three pending disputes, Burnell previously had five others, all of which alleged unsuitable recommendations involving ETFs. These five were settled, with investors receiving almost $300,000 total in damages.
- From 1999 to 2015, Burnell worked for six brokerage firms:
- Edward Jones – St. Louis, MO
- New England Securities – New York, NY
- Raymond James Financial Services, Inc. – St. Petersburg, FL
- Invest Financial Corporation – Auburn, CA
- The Investment Center, Inc. – Seneca, SC
- LPL Financial LLC – Valley Springs, CA*
* LPL Financial has been on the radar of FINRA, the SEC, and Silver Law Group for years. The firm has been involved in or alleged to have committed numerous regulatory violations that include failure to supervise, fraud, and unsuitability.
To get more information on Corey Burnell, you can read his BrokerCheck report.
Did your broker’s unsuitable investment advice cause you to lose money? The Silver Law Group may be able to assist you. Scott Silver is currently the chairman of the American Trial Lawyers Association, Securities, and Financial Fraud Group and our attorneys routinely represent investors in securities arbitration claims and other legal actions.
To discuss your situation, get in touch with us for a free consultation. Call us at 800-975-4345 or send us a message through our online form. Our firm works on contingency, which means we are not paid unless you recover funds.