William Campbell Faces 9-Month FINRA Suspension

William Campbell (CRD #: 1180015), a broker formerly registered with David Lerner Associates, has been suspended by FINRA, according to his BrokerCheck record, accessed on November 7, 2024. Keep reading if you have questions about William Campbell’s conduct as a broker.

FINRA Suspension

On October 21, 2024, William Campbell consented to the entry of findings that he allegedly recommended limited partnerships without a reasonable basis to believe they were suitable for his clients between August 2015 and August 2017.

According to a Letter of Acceptance, Waiver & Consent (AWC), these limited partnerships were allegedly formed to purchase and develop oil and gas properties, and were described in their prospectuses as being long-term, high-risk, illiquid, and speculative investments.

William Campbell allegedly recommended these limited partnerships to five client households that were interested in low-risk investments to provide short-term income. Three of these clients were allegedly seniors and another was unemployed and had no investing experience. William Campbell allegedly received $28,904.40 in commissions from these clients’ investments in the limited partnerships.

The AWC concluded that this alleged misconduct constituted violations of FINRA Rules 2111 and 2010.

FINRA Rule 2111

FINRA Rule 2111 defines unsuitable investments as those that fail to match an investor’s profile. Brokers must use the information in investors’ profiles—such as clients’ financial goals, other investments, and risk tolerance—when making investment or strategy recommendations.

Investments may be unsuitable in several ways, including:

• Investments that are over-concentrated in one stock or sector.
• High-risk or illiquid investments. 
• An excessive number of trades, which can quickly build up fees and commission costs that cut into investors’ profits.

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

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

William Campbell consented to the following sanctions:

• 9-month suspension from associating with FINRA members
• $10,000 fine
• Disgorgement of $28,904.40 plus interest

His suspension began on October 21, 2024, and will end on July 20, 2025.

You can access the full AWC here.

Investor Disputes

On August 11, 2020, an investor filed a dispute alleging William Campbell violated the suitability rule. They sought $95,380.76 in damages but the firm denied the dispute.

However, investors can still pursue FINRA arbitration and potentially recover their losses after a denial.

On June 18, 2019, an investor alleged William Campbell recommended an unsuitable investment, misrepresented/omitted information, and failed to supervise. This dispute was settled for $70,000.

FINRA Rule 2020

Misrepresentation and omission of information violate FINRA Rule 2020, which prohibits the use of deception, manipulation, and other fraudulent means of influencing investors.

FINRA Rule 3110

FINRA Rule 3110 requires firms to create and maintain systems of supervision to ensure they and their employees comply with FINRA regulations.

Background Information

William Campbell has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

He previously worked for the following firms:

• David Lerner Associates (CRD#:5397)
• Northwestern Mutual Investment Services (CRD#:2881)
• Robert W. Baird & Company (CRD#:8158)
• Pruco Securities (CRD#:5685)

Kurta Law Can Help

If you worked with William Campbell 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.