Investor Alleges John Lancaster Violated FINRA Rules

John Lancaster (CRD #: 1293652), a broker registered with Ausdal Financial Partners, allegedly committed several violations, according to his BrokerCheck record, accessed on September 26, 2022. Keep reading if you want to know more about his conduct as a broker.

Investor Dispute

On August 4, 2022, an investor alleged that John Lancaster made material misrepresentations in the sale of investments and committed unspecified breaches of suitability. The investor is also alleging a failure to supervise. The client seeks $75,000 in this pending dispute.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to follow.

FINRA Rule 2020

The misrepresentation of investments violates FINRA Rule 2020, which bans the use of manipulation, deception, and other unethical tactics to influence the purchase and sale of securities.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately fit an investor’s financial goals. Brokers must examine the information in an investor’s profile, such as their age, risk tolerance, and tax status when making recommendations.

• Securities may be unsuitable in many ways; common reasons include a high degree of risk and a lack of liquidity.
• Trading activity can be quantitatively unsuitable. Excessive trading generates fees and commissions that can significantly reduce clients’ returns or cancel them out entirely.
• Investment strategies can also be unsuitable. Overconcentration, for example, can expose an investor to a degree of risk that exceeds what is suitable for their financial situation.

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

Background Information

John Lancaster has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

John Lancaster is a registered broker in nine states and a registered investment adviser in Florida and Illinois.

He has also worked for the following firms:

• Waterstone Financial Group (CRD#:10078)
• Lifemark Securities (CRD#:16204)
• Linsco/Private Ledger Corporation (CRD#:6413)
• Park Avenue Securities (CRD#:46173)
• Guardian Investor Services (CRD#:6635)
• Capital Analysts (CRD#:5478)

Kurta Law Can Help

If you worked with John Lancaster 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 and 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.