Earl Newsome Subject of Universal Life Insurance Policy Dispute
Earl Newsome (CRD #: 2436856), a broker registered with LPL Financial, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on November 28, 2025. Keep reading if you have questions regarding his alleged conduct.
Investor Dispute
On August 4, 2025, an investor alleged that Earl Newsome recommended two indexed universal life insurance policies that were poorly designed and unsuitable for their financial circumstances.
The investor is seeking $198,000.
What is a Suitable Investment?
FINRA defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their risk tolerance, financial goals, and age.
FINRA Rule 2111 identifies the three prongs of a suitability determination as 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.
- Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards.
- Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client’s personal profile. The profile includes information on the investor’s financial goals, investing experience, and risk tolerance.
- Quantitative Suitability: Brokers with control over a customer’s account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns.
Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
He is a registered broker in ten states and is a registered investment adviser in Texas.
During his 31 years of experience, he has registered with five firms:
- LPL Financial (CRD #: 6413)
- Next Financial Group (CRD #: 46214)
- 1717 Capital Management Company (CRD #: 4082)
- Wealth Development Strategies Investment Advisory (CRD #: 119127)
- Royal Alliance Associates (CRD #: 23131)
Kurta Law Can Help
If you worked with Mohammed Karim and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want 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.