Our firm is investigating Kingswood Capital Partners, LLC broker and Kingswood Wealth Advisors, LLC investment adviser Lacey E. Buteyn (CRD# 4420482) of Plano, Texas for potential investment-related misconduct
Financial Advisor’s Career History
According to publicly available records, including Ms. Buteyn’s FINRA BrokerCheck report, Lacey E. Buteyn has been in the securities industry for more than two decades and is currently dually registered as a broker and investment adviser.
Her current registrations include:
- Kingswood Capital Partners, LLC (CRD# 288898) – broker-dealer
- Main office: 11440 W. Bernardo Court, Suite 300, San Diego, California 92127
- FINRA registration as General Securities Representative approved December 20, 2023
- Licensed as an agent in multiple states and territories, including California, Colorado, Florida, Georgia, Illinois, New York, Texas, Utah, and the U.S. Virgin Islands (with approvals in late 2023 and early 2024).
- Kingswood Wealth Advisors, LLC (CRD# 288792) – investment adviser
- Main office: 11440 W. Bernardo Court, Suite 300, San Diego, California 92127
- Investment adviser representative registrations approved in early 2024 in several states, including California, Colorado, Georgia, New York, Texas, and Utah.
- Branch office location listed as Plano, Texas.
Ms. Buteyn’s prior registration and employment history includes:
- Level Four Financial, LLC (CRD# 25700) – broker-dealer
- Plano, Texas
- Registered from April 2021 to November 2023
- Level Four Advisory Services (CRD# 134086) – investment adviser
- Dallas, Texas
- Registered from March 2014 to November 2023
- LPL Financial LLC (CRD# 6413) – broker-dealer
- Dallas, Texas
- Registered from May 2013 to April 2021
Industry exam history reflects that Ms. Buteyn has passed the Securities Industry Essentials (SIE) exam, the Series 7 (General Securities Representative) exam, the Series 31 (Futures Managed Funds) exam, and the Series 66 (Uniform Combined State Law) exam.
Lacey E. Buteyn Fraud Allegations and Investor Complaints Explained
FINRA BrokerCheck discloses one customer dispute and one employment separation after allegations involving Lacey E. Buteyn. While these disclosures include allegations that are contested and did not necessarily result in findings of wrongdoing, they are important for investors to understand when evaluating her history.
Customer Dispute Involving an Allegedly Unsuitable Private Investment
A customer dispute – closed/no action / withdrawn / dismissed / denied is reported with the following details:
- Type of Disclosure:
- Customer Dispute – Closed-No Action / Withdrawn / Dismissed / Denied
- Reporting Source:
- Broker
- Employing Firm at the Time of the Activities:
- Williams Financial (name referenced in the disclosure text as the firm associated with the activities that led to the complaint)
- Allegations:
- The customer’s authorized representative alleged that a private investment in 2012 was unsuitable.
- The complaint sought rescission of the transaction and a return of all commissions earned on the investment.
- Alleged Activity Dates:
- From September 27, 2012 through December 11, 2012
- Product Type:
- Other: Private Securities
- Alleged Damages:
- Listed as $0.00 in the report
- The disclosure notes that the compensatory amount was unspecified but reasonably believed to be over $5,000
- Complaint Format:
- Oral complaint: No
- Written complaint: Yes
- Status:
- Closed / No Action
- Status Date: April 7, 2020
- Broker’s Statement (Summary):
- Ms. Buteyn stated that the complaint concerned a single investment in 2012 by a long-term client whose overall investment returns were positive.
- She contended that she and the client reviewed the issuer’s disclosures, discussed the investment at length, and agreed that an allocation of less than 7% of the client’s portfolio with the firm and less than 4% of total net worth was suitable for the client’s investment objectives.
While the matter was closed with no action, allegations of an unsuitable private investment raise potential concerns under FINRA’s suitability rules and rules governing private securities transactions, especially when involving illiquid or complex private offerings.
Employment Separation After Variable Annuity Allegations
BrokerCheck also shows an employment separation after allegations involving Level Four Financial, LLC:
- Type of Disclosure:
- Termination – Permitted to Resign
- Reporting Source:
- Firm and Broker
- Employer Name:
- Level Four Financial, LLC
- Termination Dates:
- Firm-reported termination date: November 3, 2023
- Broker-reported termination date: October 27, 2023
- Allegations (Firm Version):
- The firm was contacted on October 27, 2023 by the Legal Department of one of the firm’s annuity carriers.
- Based on information provided by the carrier, the firm conducted an internal review.
- The firm determined that Ms. Buteyn acted outside of regulatory standards of conduct and she was permitted to resign.
- Product Type: Annuity – Variable
- Allegations (Broker Version):
- The broker’s version of the disclosure reiterates that the firm was contacted by the annuity carrier’s legal department on October 27, 2023, that an internal review followed, and that the firm concluded she had acted outside regulatory standards, leading to her permitted resignation.
Although no specific customer is named and no compensatory damages are listed, an employment separation tied to concerns raised by an annuity carrier typically suggests issues related to variable annuity sales practices, regulatory standards of conduct, or firm policies and procedures.
Summary of Reported Disclosures
For ease of reference, the material disclosures reported on BrokerCheck for Lacey E. Buteyn include:
- Customer Dispute – Closed / No Action / Withdrawn / Dismissed / Denied
- Action: Customer dispute regarding a private investment
- Allegations: Unsuitable private investment in 2012; request for rescission and return of commissions
- Product: Private securities
- Status: Closed / no action, with no settlement amount recorded
- Status Date: April 7, 2020
- Employment Separation After Allegations (Termination – Permitted to Resign)
- Firm: Level Four Financial, LLC
- Allegations: After an annuity carrier’s legal department contacted the firm, an internal review concluded Ms. Buteyn acted outside regulatory standards of conduct in connection with variable annuity business, and she was permitted to resign.
- Product: Annuity – Variable
Investors who purchased private securities or variable annuities through Ms. Buteyn may wish to review their accounts to determine whether the recommendations were suitable, fully explained, and properly supervised.
To obtain a copy of Lacey E. Buteyn’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2111 (Suitability)
FINRA Rule 2111 requires that a broker have a reasonable basis to believe that any recommended transaction or investment strategy is suitable for the customer based on that customer’s investment profile, including age, financial situation, investment experience, risk tolerance, time horizon, and liquidity needs.
In the 2012 private investment dispute reported on Ms. Buteyn’s record, the customer’s authorized representative alleged that the private investment was unsuitable and requested rescission and the return of commissions. If an advisor recommended a private security that was illiquid, complex, or high-risk to an investor whose objectives favored lower risk or greater liquidity, arbitrators could conclude that such recommendations violated Rule 2111’s customer-specific suitability obligation.
Likewise, in connection with the variable annuity business that led to Ms. Buteyn’s permitted resignation from Level Four Financial, regulators or arbitrators might analyze whether the annuity products were suitable given the customer’s age, time horizon, and financial goals. Variable annuities with lengthy surrender periods, high internal fees, or complex riders may be unsuitable if they do not match the client’s profile, and such mismatches can be actionable under Rule 2111.
FINRA Rule 2330 (Members’ Responsibilities Regarding Deferred Variable Annuities)
FINRA Rule 2330 imposes heightened responsibilities on firms and associated persons who recommend deferred variable annuities. The rule requires:
- A careful evaluation of whether the annuity is suitable and in the customer’s best interest, taking into account fees, surrender charges, and the long-term nature of the product.
- Detailed documentation and review of the customer’s financial situation, tax status, investment objectives, and liquidity needs.
- Enhanced supervisory and principal review of variable annuity purchase or exchange applications before submission to the insurance company.
In Ms. Buteyn’s termination disclosure, Level Four Financial reported that an annuity carrier’s legal department contacted the firm and that an internal review determined she had acted outside regulatory standards of conduct involving a variable annuity product. If a variable annuity were recommended or processed in a way that failed to comply with Rule 2330’s suitability, disclosure, or supervisory requirements, that conduct could be deemed inconsistent with Rule 2330.
Even if there has not yet been a formal regulatory action, the firm’s decision to allow an advisor to resign after an annuity-related review often signals that the firm believed the conduct did not meet the standards contemplated by Rule 2330 and related supervisory rules.
FINRA Rule 3280 (Private Securities Transactions of an Associated Person)
FINRA Rule 3280 governs private securities transactions (“selling away”) by associated persons of member firms. A private securities transaction generally includes any securities transaction outside the regular scope of the broker’s employment with her firm, including many private placements and off-platform investment programs.
Under Rule 3280, before participating in a private securities transaction, a broker must:
- Provide prior written notice to the employing firm, describing the proposed transaction and the broker’s role.
- Obtain the firm’s written approval if the broker will receive selling compensation.
- Permit the firm, once it approves the activity, to record and supervise the transaction as if the firm itself were recommending it.
The customer dispute on Ms. Buteyn’s record involves an allegedly unsuitable private investment in 2012 in “Other: Private Securities,” with the customer’s representative seeking rescission and a refund of commissions. In many similar cases, claimants and regulators scrutinize whether the advisor complied with Rule 3280’s notice and approval requirements, and whether the firm properly supervised the private offering.
If it were shown that a private investment was sold without adequate firm supervision, without proper written disclosure to the firm, or without appropriate suitability analysis, FINRA could view the activity as a violation of Rule 3280 and, potentially, of the firm’s supervisory obligations—exposing both the advisor and the firm to liability in FINRA arbitration or regulatory proceedings.
The Law Offices of Robert Wayne Pearce, P.A. is a nationally recognized securities law firm representing investors in FINRA arbitration and securities fraud cases on a contingency fee basis. Robert Wayne Pearce, the founding attorney, has more than 45 years of experience recovering millions for victims of broker misconduct and investment fraud. He previously defended major brokerage firms and now uses that insight to protect investors nationwide. To discuss your case directly with Mr. Pearce, call (800) 732-2889 or email pearce@rwpearce.com for a free consultation.