December 6, 2019 Comments Off on Lester W. Burroughs (Chad Burroughs) Broker Investigation Blog, Current Investigations, Securities Fraud

Lester W. Burroughs (Chad Burroughs) Broker Investigation

Lester W. Burroughs (Chad Burroughs) Broker Investigation, featured by Top Securities Fraud Attorneys, The White Law Group

Financial Advisor Lester W. Burroughs (Chad Burroughs), Lincoln Investment in Torrington, CT

Are you concerned about investments with Lester W. Burroughs in Torrington, CT? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.

According to the Securities and Exchange Commission on December 5, the regulator has charged financial advisor Lester W. Burroughs (also known as Chad Burroughs) with allegedly misappropriating $560,000 from his advisory clients by purportedly selling fake financial products and allegedly keeping the proceeds.

The SEC’s complaint alleges that Burroughs’ scheme purportedly defrauded retail investors by allegedly stealing money from one advisory client and then “making Ponzi-like payments to the client using assets misappropriated from other advisory clients.”

Burroughs apparently convinced three clients to invest approximately $560,000, some of which he allegedly used to repay the original client approximately $445,000, which reflected the principal invested plus 4 percent annual interest.

 According to the complaint, Burroughs allegedly told these advisory clients that he would invest their money in “Guaranteed Interest Contracts” (GIC) with guaranteed annual returns of 4% or 7%. Instead of investing the money in GICs he purportedly kept the funds for himself and “provided clients with fake account statements to hide his theft.”

In a parallel action, the U.S. Attorney for the District of Connecticut announced criminal charges against Burroughs.

According to his FINRA BrokerCheck report, Burroughs is reportedly affiliated with Lincoln Investment in Torrington, CT since 2012.

Burroughs’s broker report indicates that 14 customer complaints have reportedly been filed against him during his 33 year stint in the securities industry. Allegations include improper sales practices and misrepresentations, among others.

Investigating Potential Lawsuits

The White Law Group is investigating potential lawsuits regarding the liability that Burroughs’s employers may have for failure to properly supervise him.

When brokers violate securities laws, such as misappropriating client funds, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

We represent investors in FINRA arbitration claims in all 50 states, including Connecticut. Our attorneys have recovered millions of dollars from many brokerage firms in the past.

If you are concerned about your investments with Lester W. Burroughs (Chad Burroughs), please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.

If you are concerned about your investments with Lester W. Burroughs (Chad Burroughs), please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.

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