David Francis LaGrange (CRD #4200976) Has Regulatory and Customer Dispute Disclosures on FINRA BrokerCheck

David Francis LaGrange (CRD #4200976) is a broker with regulatory and customer dispute disclosures on FINRA BrokerCheck. We reviewed his BrokerCheck report on February 4, 2026. It reflects one regulatory event and three customer disputes. If you invested with David Francis LaGrange and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Regulatory Action(s)

David LaGrange’s FINRA BrokerCheck report reflects one regulatory event. A summary of the event is below:

On September 27, 2024, the U.S. Securities and Exchange Commission entered an order against Moloney Securities Co., Inc., Donald R. Hancock, David LaGrange, and Laura B. Barnes. The order states that the respondents failed to comply with Regulation Best Interest in connection with recommendations of GWG Holdings, Inc. “L Bonds” to retail customers. The order included a cease-and-desist, a censure, and monetary sanctions. BrokerCheck lists $20,442 in disgorgement, $2,848 in prejudgment interest, and a $12,500 civil money penalty for LaGrange. You can read the SEC Order (PDF).

Investor Disputes / Customer Complaints

David LaGrange’s FINRA BrokerCheck report reflects three customer dispute disclosures. A summary of two disputes is below:

On January 5, 2026, a customer alleged suitability and negligence connected to corporate debt recommendations in 2020. The customer sought $577,239 in damages. The matter is listed as pending. LaGrange’s statement says the client held a GWG bond when the issuer filed for bankruptcy and the investment could not be liquidated before the Chapter 11 filing.

On December 31, 2024, a customer alleged suitability and negligence connected to corporate debt recommendations in 2020. The customer sought $100,000 in damages. BrokerCheck lists the dispute as settled for $32,500. LaGrange’s statement says the firm settled for business reasons without admitting wrongdoing and disputed the allegations.

BrokerCheck lists one additional customer dispute disclosure for David LaGrange.

Rule Summary #1: FINRA Rule 3110 (Supervision)

FINRA Rule 3110 requires firms to maintain a supervisory system that is reasonably designed to achieve compliance with securities laws and FINRA rules. When a regulator finds problems tied to recommendations, questions often follow about how the firm supervised those sales and reviewed customer suitability.

Rule Summary #2: FINRA Rule 2111 (Suitability)

FINRA Rule 2111 requires a broker to have a reasonable basis to believe a recommendation is suitable based on the customer’s investment profile. Customer disputes about corporate bond recommendations often raise questions about risk, liquidity, and whether the investment fit the customer’s objectives.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on His FINRA BrokerCheck report, David Francis LaGrange:

Is currently registered with Berthel, Fisher & Company Financial Services, Inc. and BFC Planning, Inc.

Has passed the Securities Industry Essentials (SIE) exam. David LaGrange has also passed Series 7 and Series 63.

Was previously registered with firms that include Moloney Securities Co., Inc. and Eagle One Investments, LLC.

Kurta Law Can Help

If you have worked with David LaGrange and you have concerns about his activity, Kurta Law may be able to help you evaluate your legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Unsuitable Investments | Securities Attorney

For nearly 20 years, Kurta Law has advocated for investors and helped hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. If you believe a broker or firm mishandled your account, an attorney can review the facts and explain possible next steps.