Derek McLean Facing Allegations of Elder Abuse

Derek McLean (CRD #: 1939560), a broker registered with Cetera Advisors, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on January 20, 2024. Keep reading if you have questions regarding his alleged conduct. 

On October 24, 2023, an investor alleged that Derek McLean recommended unsuitable investments, breached his fiduciary duty, and engaged in financial elder abuse. Financial elder abuse is alarmingly common in the securities industry and investors should know how to spot the signs. The investor further alleged a failure to supervise. 

Failure to Supervise 3110

FINRA Rule 3110 requires that firms establish systems of supervision to maintain their compliance with securities regulations. This includes appointing supervisors and providing them with Written Supervisory Procedures (WSPs).

Unsuitable Investments

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals.

Some common violations of this rule include:

• Excessive trading, which violates the need for quantitative suitability. This means that the number of trades must suit an investor’s goals. Excessive trading is also known as “churning.” 
• Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk.
• Recommendations of high-risk or illiquid investments. These investments may lead to high fees for the investor.

Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

Background Information 

Derek McLean has passed the following exams: 

• Series 65 Uniform Investment Adviser Law Examination
• Series 63 Uniform Securities Agent State Law Examination
• Series 99TO Operations Professional Examination  
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 
• Series 6 Investment Company Products/Variable Contacts Representative Examination 
• Series 26 Investment Company Products/Variable Contracts Principal Examination 

He is a registered broker in 16 states and is a registered investment adviser in California and Texas. 

During his 34 years of experience, Derek McLean has registered with the following eight firms: 

• Cetera Advisors (CRD #: 10299)
• Cetera Investment Advisers (CRD #: 105644) 
• First Allied Securities (CRD #: 32444)
• First Allied Advisory Services (CRD #: 137888) 
• FFP Securities (CRD #: 16337) 
• FFP Advisory Services (CRD #: 110778) 
• Planners’s Independent Management (CRD #: 10547) 
• First American National Securities (CRD #: 10111) 

Kurta Law Can Help 

If you have worked with Derek McLean and you have concerns about your investments, do not hesitate to contact us at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.