Have you lost money due to bad investment advice? Financial Advisor William Lee Campbell. This blog post will explain why FINRA took action against Campbell.
We’ll cover the complaints, the suspension, and what it means for investors. Read on to learn more.
Key Takeaways
Table of Contents
- FINRA suspended William Lee Campbell for 18 months and fined him $10,000 for unsuitable investment advice.
- Campbell must repay $28,904.40 in commissions plus interest for recommending risky energy partnerships to vulnerable clients from 2015-2017.
- Customer complaints included a 73-year-old retiree who invested $312,000 and a 28-year-old unemployed person who invested $100,000 from an injury settlement.
- Campbell violated FINRA Rules 2111 and 2010 on suitability and ethical standards by pushing high-risk investments on clients seeking low-risk options.
- The case highlights the importance of investor protection and serves as a warning to financial advisors to follow rules and prioritize client interests.
Details of FINRA’s Suspension of William Lee Campbell
FINRA suspended William Lee Campbell for 18 months. They also fined him $10,000 for making unsuitable investment recommendations.
Length of suspension and financial penalties
FINRA hit William Lee Campbell with tough penalties. They suspended him for nine months, from October 22, 2024, to July 21, 2025. Campbell also got slapped with a $10,000 fine. On top of that, he must pay back $28,904.40 in commissions plus interest.
These sanctions came after claims of unsuitable investment advice. Campbell agreed to the punishments without saying he did anything wrong. The suspension and fines show how serious FINRA takes rule-breaking in the finance world.
They aim to protect investors and keep advisors in line.
Allegations of unsuitable investment recommendations
FINRA accused William Lee Campbell of making unsuitable investment recommendations. From August 2015 to August 2017, Campbell advised clients to invest in risky energy-related limited partnerships.
These investments were speculative, hard to sell, and meant for long-term holding. Campbell’s clients included older adults and new investors who wanted safe, monthly income. His suggestions went against what these clients needed and could handle.
Campbell’s actions broke FINRA rules about suitable recommendations. The regulatory body found that he failed to consider his clients’ financial situations and goals. He pushed high-risk investments on people who couldn’t afford to lose money.
This led to complaints from customers who lost money due to Campbell’s advice. As a result, FINRA took action against Campbell to protect investors and uphold industry standards.
Customer Complaints and Investor Losses
Customer complaints against William Lee Campbell reveal serious investor losses. Allegedly a retired 73-year-old invested $312,000, while a 28-year-old unemployed person put in $100,000 from an injury settlement.
These cases show risky investments for vulnerable clients. On March 17, 2022, an arbitration claim sought $5,000 in damages. David Lerner Associates Inc. paid $14,999 to settle this claim.
Another complaint filed on August 11, 2020, claimed unsuitable investments and asked for $95,380.76 in damages. David Lerner Associates denied this complaint on October 7, 2020. These cases highlight the financial harm caused by Campbell’s actions.
Investors faced significant losses due to unsuitable investment advice.
Investor grievances often stem from unsuitable investment recommendations, leading to substantial financial losses.
FINRA Rules Violated by Campbell
Moving from customer complaints to specific rule violations, Campbell’s actions alledgely broke key FINRA rules. He ignored FINRA Rules 2111 and 2010, which cover suitable investments and ethical standards.
Campbell pushed high-risk, hard-to-sell limited partnerships on clients who wanted low-risk options. This unethical behavior earned him nearly $29,000 in commissions.
FINRA took strong action against Campbell’s misconduct. They suspended him for nine months, from October 2024 to July 2025. They also fined him $10,000 and ordered him to pay back all his commissions plus interest.
These penalties show how seriously FINRA views violations of its rules on ethics and suitable investments.
Conclusion
FINRA’s suspension of William Lee Campbell shows how serious they take investor protection. Campbell’s actions hurt many people, including seniors and new investors. His case serves as a warning to other financial advisors.
It reminds them to follow rules and put clients first. Investors should always check their advisor’s record and ask questions about investment risks.
