Stephen Lawler Allegedly Recommended Unsuitable Alternative Investments

Stephen Lawler (CRD #: 1193477), a broker registered with Cetera Advisors, is the subject of an investor dispute, according to his BrokerCheck record, accessed on September 27, 2023. Keep reading if you have questions about his alleged conduct.

On July 7, 2023, an investor alleged that Stephen Lawler recommended unsuitable, alternative investments and that he failed to make full disclosures. 

On December 14, 2021, investors alleged that Stephen Lawler recommended unsuitable investments. The investor is seeking $100,000.01. 

There is a similar dispute from the same year. On June 22, 2021, an investor alleged that Stephen Lawler recommended unsuitable alternative investments that caused financial harm. The investors alleged unsuitability, misrepresentation, overconcentration, fraud, and breach of contract. The dispute settled for $425,000. 

FINRA Rule 2020 – Misrepresentation

FINRA Rule 2020 prohibits the misrepresentation of investments or omission of material facts. Material facts include information about an investment’s potential returns, as well as charges, expenses, and fees. Brokers must always disclose the risks associated with illiquid investments, such as early withdrawal fees.

FINRA Rule 2111 – 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, and financial goals. 

• Investments can be unsuitable because they are high-risk and likely to lose money.
• Securities may also be unsuitable because they are illiquid, meaning that they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
• Securities can be quantitatively unsuitable, which means the broker executed an excessive number of trades. The number of trades increases the transaction fees, and these fees cut into the returns for the investor. 
• These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are overconcentrated in a particular stock or sector.

Investors who rely on brokers for investment recommendations can pursue FINRA arbitration to recover their losses.

Background Information 

Stephen Lawler has passed the following exams: 

• 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 22 Direct Participation Programs Representative Examination 
• Series 6 Investment Company Products / Variable Contracts Representative Examination 
• Series 24 General Securities Principal Examination 

He is a registered broker in 12 states and is a registered investment adviser in Illinois and Texas. 

During his 39 years of experience, Stephen Lawler has registered with nine firms: 

• Cetera Advisors (CRD #: 10299) 
• Cetera Investment Adviser (CRD #: 105644) 
• First Allied Securities (CRD #: 32444) 
• Lawler Financial Advisory Corporation (CRD #: 123186) 
• First Allied Advisory Services (CRD #: 137888) 
• Investacorp (CRD #: 7684) 
• Integrated Resources Equity Corporation (CRD #: 6403) 
• FSC Securities Corporation (CRD #: 7461) 
• Home Life Equity Sales Corp. (CRD #: 10410) 

Kurta Law Can Help

If you worked with Stephen Lawler and 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.