Purshe Kaplan Sterling Investments – Investor Lawsuit and Regulatory Review
The White Law Group is investigating the regulatory history and disciplinary actions involving Purshe Kaplan Sterling Investments (CRD#: 35747/SEC#: 8-46844), a FINRA-registered broker-dealer. The firm has faced numerous regulatory sanctions and has employed brokers with significant disclosure histories, including multiple individuals who have been permanently barred from the securities industry.
Regulatory Sanctions Against Purshe Kaplan Sterling Investments
December 20, 2023 – FINRA Censure & Fine
FINRA censured Purshe Kaplan Sterling Investments, fined the firm $40,000, and ordered $16,000 in restitution for failing to disclose material risks in private placement offerings. The firm consented to the sanctions without admitting or denying the findings.
July 13, 2023 – State of Maine Fine
The State of Maine fined Purshe Kaplan Sterling Investments $2,500 for failing to conduct required on-site branch office inspections in 2022. The firm consented to the sanction without admitting or denying the findings.
February 17, 2022 – Massachusetts Sanctions
The Massachusetts Securities Division sanctioned Purshe Kaplan Sterling Investments for failing to review leveraged ETF transactions and maintain adequate supervisory procedures. The firm was censured, fined $250,000, and ordered to pay $64,628 in restitution, along with conducting an internal compliance review. The case was resolved on January 14, 2024.
These actions highlight ongoing compliance and supervisory concerns at Purshe Kaplan Sterling Investments.
Barred and Disciplined Brokers at Purshe Kaplan Sterling Investments
Lee Taylor (CRD#: 3045030)
Former Investments broker barred by FINRA in September 2021 after refusing to provide documents in an investigation into potential undisclosed private securities transactions. Taylor is permanently prohibited from acting as a broker or associating with any FINRA member firm.
Gopi Vungarala (CRD#: 4856193)
Former broker barred by FINRA in 2018 after allegedly defrauding a Native American tribe by steering more than $190 million into non-traded REITs and BDCs while concealing over $9.6 million in commissions. He has multiple regulatory actions and customer disputes on record.
Brenda Eschbach (CRD#: 4126102)
Former Investments broker barred by the SEC in 2012 after pleading guilty to mail fraud and money laundering in connection with a scheme that misappropriated millions from clients. She is permanently prohibited from acting as a broker, investment adviser, or participating in penny stock offerings.
William Weisbrod (CRD#: 812664)
Former Investments broker barred by FINRA in August 2023 after findings that he breached fiduciary duties to a community bank by directing it into a risky trading strategy that generated more than $1 million in commissions, $370,000 of which was funneled back to him. The bank incurred significant losses and remediation costs exceeding $600,000. Weisbrod’s disciplinary record also includes a $12 million customer dispute (settled for $425,000) and a prior suspension in 2009 tied to unsuitable mutual fund transactions.
Lilia Nia (CRD#: 6018019)
Former Purshe Kaplan Sterling Investments broker suspended by FINRA in August 2023 for one year after effecting unauthorized trades in a community bank account and sharing commissions with another representative. Her misconduct generated approximately $1 million in commissions, while costing the bank more than $600,000 to remediate portfolio risks. Nia was fined $5,000 and ordered to disgorge $150,000. Her record also includes a $12 million customer dispute settled for $425,000.
Risks for Investors
When firms like Purshe Kaplan Sterling Investments fail to properly supervise their brokers, investors may face:
- Misrepresentation or omission of investment risks
- Unsuitable trading in private placements and complex products
- Conflicts of interest and unauthorized transactions
- Significant financial losses due to supervisory failures
Brokerage firms can be held liable for investor damages stemming from broker misconduct.
Recovery Options – FINRA Arbitration
If you have suffered financial losses in this investment or one of its former brokers, you may be able to recover damages through FINRA Arbitration. This process allows investors to bring claims directly against firms for supervisory failures and misconduct by their advisors.
About The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. With over 30 years of experience and more than 800 FINRA arbitration claims handled nationwide, our attorneys help investors recover losses from negligent brokerage firms and financial advisors.
If you believe you were a victim of misconduct, please call 888-637-5510 for a free consultation.
For more information, visit us online at www.whitesecuritieslaw.com.
Last modified: August 29, 2025
