Douglas Nelson is the Subject of a $250,000 Dispute

Douglas Nelson (CRD #: 4609776), a broker registered with LPL Financial, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on March 15, 2024. Keep reading if you have questions regarding this dispute. 

Alleged L Bond Recommendations 

On January 11, 2024, investors alleged that Douglas Nelson and Kingswood Capital partners made an unsuitable and misleading investment recommendation to invest in and hold a portion of the claimants’ assets into GWG Holding’s L Bonds. GWG Holdings filed for bankruptcy after halting interest payments to bondholders in early 2022. 

The investor alleges that this recommendation violated Regulation Best Interest. The investor is seeking $250,000. 

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

Unsuitable Investments 

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. Investor profiles have information on the investor’s age, risk tolerance, tax status, investing experience, and financial goals. Investments that do not take these factors into account may be unsuitable. 

Misrepresentation

FINRA Rule 2020 prohibits the misrepresentation of investments and omission of material facts. Material facts include information about an investment’s potential returns, as well as charges, expenses, and fees.

Background Information 

Douglas Nelson has passed the following exams

• Series 66 Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination 
• Series 7 General Securities Representative Examination 

He is a registered broker in nine states and is a registered investment adviser in Nevada and Texas. 

During his 21 years of experience, he has registered with five firms: 

• LPL Financial (CRD #: 6413)
• M Stevens Wealth Advisors (CRD #: 291482) 
• Kingswood Capital Partners (CRD #: 288898) 
• Chalice Wealth Advisors (CRD #: 288782) 
• Waddell & Reed (CRD #: 866) 

Kurta Law Can Help 

If you have worked with Douglas Nelson 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.