Chad Burroughs (Lester Burroughs) Securities Fraud Investigation
Have you suffered losses investing with Chad Burroughs (aka Lester Burroughs) 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 a press announcement, the Securities and Exchange Commission has barred Burroughs after he reportedly pleaded guilty last month to one count of wire fraud.
Burroughs allegedly defrauded three advisory clients out of $575,000 by purportedly convincing them 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.”
According to his FINRA BrokerCheck report, Burroughs was reportedly affiliated with Lincoln Investment in Torrington, CT from 2012 until December 2019 when “Lincoln became aware of charges filed on December 4, 2019 by the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office wherein the representative plead guilty to one count of wire fraud in the sale of fictitious insurance contracts to four individuals.”
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 continues to investigate potential securities fraud claims involving the liability his former employers may have for failure to properly supervise Burroughs.
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.
If you have suffered losses investing Chad Burroughs (aka Lester Burroughs), please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.