Our firm is investigating LPL Financial LLC broker and investment adviser Cole Conrad (CRD# 6123930) of Wilton, Connecticut for potential investment-related misconduct.
Financial Advisor’s Career History
According to BrokerCheck, Conrad’s securities industry registration history began in 2014 with MSI Financial Services, Inc. in Elmsford, New York. He later registered with MML Investors Services, LLC from March 2017 through October 2020, then joined LPL Financial LLC in September 2020, where he remains registered as both a broker and investment adviser representative in Wilton, Connecticut. BrokerCheck also shows that he has been associated with Trivium Point Advisory, LLC since December 15, 2023.
Cole Conrad Fraud Allegations and Investor Complaints Explained
FINRA records reflect one final customer dispute disclosure involving Conrad. The complaint was received on March 1, 2021, and alleged that REITs sold beginning in or around 2014 while he was associated with MSI Financial Services, Inc. were unsuitable for a conservative portfolio. The matter was reported as a written customer complaint rather than an arbitration or civil lawsuit, and it settled on December 21, 2021 for $13,431. The reported individual contribution was $0, while the firm stated it could not make a good-faith determination that damages would be under $5,000.
Disclosure Summary
- Disclosure Type: Customer Dispute
- Date Complaint Received: March 1, 2021
- Alleged Conduct: Sale of REITs beginning in or around 2014 that were allegedly unsuitable for a conservative investor
- Product Type: REITs / real estate security
- Alleged Damages: Reported as $0.00, with the firm stating it could not determine in good faith that damages would be under $5,000
- Action: Written customer complaint
- Disposition: Settled
- Status Date: December 21, 2021
- Settlement Amount: $13,431
- Individual Contribution: $0.00
No other disclosure types appear in the current BrokerCheck report.
Investors reviewing Conrad’s record should closely examine whether alternative or real-estate-linked products were recommended in a manner consistent with their stated investment objectives, liquidity needs, and risk tolerance. To obtain a copy of Cole Conrad’s FINRA BrokerCheck report, visit this link.
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FINRA Rule 2111 and Suitability Obligations
FINRA Rule 2111 requires a broker to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer based on that customer’s investment profile. In the complaint disclosed on Conrad’s record, the allegation was that REITs were recommended beginning in or around 2014 for a conservative portfolio. That makes Rule 2111 directly relevant because the central issue is whether the product’s risk, liquidity, and concentration characteristics matched the investor’s stated profile.
FINRA Rule 2090 and Know-Your-Customer Duties
FINRA Rule 2090 requires member firms and their associated persons to use reasonable diligence to know the essential facts concerning each customer and each account. In a case involving allegedly unsuitable REIT recommendations, Rule 2090 matters because a broker cannot properly evaluate suitability without first understanding the customer’s financial condition, investment objectives, risk tolerance, and need for liquidity. If a conservative investor was placed into illiquid or higher-risk real estate products, questions naturally arise as to whether those essential facts were adequately gathered and applied.
FINRA Rule 2010 and Standards of Commercial Honor
FINRA Rule 2010 requires brokers and member firms to observe high standards of commercial honor and just and equitable principles of trade. When an investor alleges that a security recommendation was inappropriate for a conservative portfolio, Rule 2010 can come into play because conduct that is inconsistent with suitability and fair dealing may also fall short of FINRA’s broader ethical standards. In that sense, the disclosure on Conrad’s record may be evaluated not only through the lens of technical suitability, but also through the broader duty to deal fairly with customers.
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.