David Taddeo, LPL Financial: Customer Complaints, FINRA Sanctions, and Lawsuits
The White Law Group is investigating potential securities claims involving David Taddeo formerly of LPL Financial.
David Taddeo (CRD #1163829) is a formerly registered broker and investment adviser who has reportedly been the subject of multiple customer complaints and a recent FINRA disciplinary action involving undisclosed private securities transactions. Investors searching for information about David Taddeo customer complaints or potential David Taddeo lawsuits should understand his regulatory history, the allegations against him, and their legal options through FINRA arbitration.
David Taddeo Broker Registration History
David Taddeo first registered with FINRA as a General Securities Representative in 1983. Over more than two decades in the securities industry, he was associated with several FINRA member firms, including:
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Financial Network Investment Corporation (1998–2000)
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American Pacific Securities Corporation (1983–1984)
While at LPL Financial, Taddeo was also registered as a General Securities Principal. According to FINRA records, he currently has no active FINRA registrations or state licenses. Despite this, he remains subject to FINRA’s jurisdiction under Article V, Section 4 of FINRA’s By-Laws.
LPL Financial Termination and New FINRA AWC
On March 8, 2024, LPL Financial filed a Form U5 disclosing that it had reportedly discharged David Taddeo. The firm alleged that he:
“Directed customers to participate in a private securities transaction in which the representative also participated, in violation of firm policy.”
FINRA later investigated this conduct. According to FINRA’s Acceptance, Waiver and Consent (AWC), from August 2020 through September 2020, while still associated with a FINRA member firm, Taddeo participated in private securities transactions with three customers who invested a total of $255,000, without providing prior written notice to his firm.
FINRA found that this conduct violated:
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FINRA Rule 3280 – Private Securities Transactions
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FINRA Rule 2010 – Standards of Commercial Honor and Principles of Trade
Without admitting or denying the findings, David Taddeo consented to the entry of FINRA’s sanctions.
David John Taddeo Customer Complaints and Allegations
FINRA’s BrokerCheck records reflect numerous customer complaints against David John Taddeo, including allegations involving unsuitable investment recommendations, misrepresentations, and undisclosed private investments.
Notable disclosures include:
Pending Customer Complaint (July 2025)
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Allegations of misrepresentation and suitability violations
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Investment involved an illiquid variable annuity
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Claimed damages: $202,000
Settled Customer Complaint (December 2023)
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Allegations of unsuitability and breach of fiduciary duty
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Involved a private securities transaction conducted without firm approval
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Settlement amount: $107,500
Settled Customer Complaint (July 2020)
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Allegations that variable annuity income benefits were misrepresented
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Settlement amount: $249,624
Additional customer disputes dating back to the early 2000s also appear on Taddeo’s record, several of which resulted in settlements.
Private Securities Transactions and Supervision Failures
Cases involving private securities transactions, often referred to as “selling away,” raise serious concerns about broker due diligence and firm supervision. FINRA rules require brokers to disclose outside investments so firms can evaluate suitability, risks, and conflicts of interest.
When brokers fail to disclose these transactions, investors may be exposed to illiquid, high-risk, or unregistered investments. In many cases, brokerage firms may be held liable if they failed to reasonably supervise the broker or ignored red flags.
FINRA Arbitration and Investor Recovery Options
Most claims involving broker misconduct are resolved through FINRA arbitration, not traditional court litigation. FINRA arbitration is typically faster and more efficient and allows investors to seek compensation for losses caused by:
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Unsuitable investment recommendations
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Misrepresentations or omissions
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Undisclosed private securities transactions
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Failure to supervise
Even if a broker is no longer registered, investors may still be able to pursue claims against the brokerage firm that employed or supervised the advisor.
Contact The White Law Group
With offices in Seattle and Chicago, The White Law Group represents investors nationwide in FINRA arbitration claims involving broker misconduct and supervisory failures. If you suffered losses related to David Taddeo customer complaints or lawsuits, our attorneys can review your case and explain your legal options.
Contact The White Law Group today at 888-637-5510 for a free and confidential consultation or visit us on the web at whitesecuritieslaw.com.
Frequently Asked Questions About David John Taddeo
Can investors file lawsuits or arbitration claims involving David Taddeo?
Yes. Investors may be able to pursue claims through FINRA arbitration, often against the brokerage firm that employed or supervised him, even though he is no longer registered.
What is a private securities transaction under FINRA rules?
A private securities transaction occurs when a broker participates in an investment outside the firm without proper disclosure or approval. FINRA Rule 3280 requires prior written notice to allow firm supervision.
How long do investors have to file a FINRA arbitration claim?
FINRA generally applies a six-year eligibility rule from the date of the event giving rise to the claim. Because deadlines can vary, investors should speak with a securities fraud attorney as soon as possible.
