Customers of former LPL Financial LLC (Santa Ana, CA) broker Karl Horace Romero have, over the past few years, filed a series of disputes and complaints, alleging that Romero's unsuitable investment recommendations, negligence, misrepresentation and breach of fiduciary duty has resulted in combined damages in excess of $1 million.
For instance, the most recent dispute filed against Romero is dated April 8, 2016 with the complainants alleging that they suffered losses as a result of unsuitable investment recommendations. They are seeking $350,000 in damages.
According to Romero's BrokerCheck report, that makes nine customer disputes since 2013 and 12 total dispute disclosures since joining LPL in 1989. The first, a 1993 dispute settled under confidential terms, also alleged suitability violations and sought $67,000 in damages. A majority of the disputes alleged unsuitable recommendations, misrepresentation, and/or breach of fiduciary duty.
Whereas Romero often denied any wrongdoing, he stated that LPL Financial opted to settle several of the complaints "to avoid any further cost of litigation."
One such civil litigation heard in Orange County Superior Court in Fullerton involved REITs and similarly, according to Romero, "was resolved [via settlement] solely as a business decision by the firm." Several other claims involved mutual funds and alternative investments.
In all, Romero commented on seven of the complaints in his file, claiming that all seven were settled by either LPL Financial or Romero's insurance liability carrier for several hundreds of thousands of dollars and without any admission of liability.
If you have invested with former broker Karl Horace Romero of LPL Financial's Santa Ana, California branch or with any broker or financial adviser whose unsuitable recommendations or misrepresentation or excessively risky investment activity has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.