Securities Regulators Bar Derek Copeland after Investigation
The Financial Industry Regulatory Authority (FINRA) has reportedly barred Derek Copeland (CRD#: 4347572), a veteran broker with 21 years of experience in Charlotte, NC, for allegedly raising $11 million through unapproved outside investments.
Between March 2020 and January 2023, Copeland reportedly recommended 19 securities tied to various businesses, including a flooring company and real estate projects, soliciting investments from 27 individuals—22 of whom were his customers, according to an article in Advisor Hub. He reportedly received $173,000 in compensation for management, consulting, and referrals without notifying or obtaining approval from his firm, LPL Financial.
FINRA also found that Copeland used unapproved personal communication channels to discuss securities-related business, violating record keeping and conduct standards. He settled the allegations without admitting or denying the findings.
Previously, in May 2023, another broker on Copeland’s team was barred after refusing to cooperate in a similar investigation, according to the article.
FINRA BrokerCheck: Derek Copeland
The FINRA BrokerCheck tool is a free online tool that allows investors to research and verify the background and credentials of financial brokers, brokerage firms, and investment advisors registered with FINRA.
According to his FINRA BrokerCheck report, Copeland was reportedly fired by LPL and Independent Advisor Alliance (IAA) in January 2023 for undisclosed outside business activities. His BrokerCheck record includes a $1.5 million complaint for unsuitable recommendations, which was settled for $175,000 without his contribution. He is listed as a principal at MCM Partners, a real estate firm.
Derek Copeland was reportedly registered with the following firms among others during his career in the securities industry:
03/05/2020 – 01/30/2023, LPL FINANCIAL LLC (CRD#:6413) CHARLOTTE, NC
03/23/2017 – 03/05/2020, SPIRE SECURITIES, LLC (CRD#:144131) Charlotte, NC
06/01/2009 – 03/27/2017, MORGAN STANLEY (CRD#:149777) CHARLOTTE, NC
Broker Misconduct and Failure to Supervise
Broker misconduct occurs when financial advisors engage in unethical or fraudulent practices, such as misrepresenting investments, unauthorized trading, or misusing client funds. FINRA-registered broker-dealers have a duty to supervise their brokers to prevent such misconduct.
If the firm fails to supervise its brokers properly, it can be held liable through FINRA arbitration. Investors who suffer losses due to a broker’s misconduct can file a claim against both the broker and the firm, alleging failure to supervise. If a firm neglects this duty, it may be ordered to compensate the affected investor through an arbitration award.
Class Action Lawsuit vs. Individual FINRA Arbitration Lawsuit
You may wonder whether a large class action lawsuit is a better litigation option than an individual FINRA arbitration case. The answer depends on many factors, but typically if the loss sustained is large (say larger than $100,000), an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.
FINRA Lawsuits
If you have suffered investment losses with Derek Copeland and LPL Financial, the securities attorneys at the White Law Group may be able to help you by filing a FINRA lawsuit. Please call our offices at (888) 637-5510 for a free consultation. We take cases in all 50 states including North Carolina.
National Securities Attorneys
The White Law Group, LLC is a national law firm in securities fraud, securities arbitration, investor protection, and securities regulation and compliance. With offices in Chicago, Illinois and Seattle, Washington, the firm is dedicated to assisting investors across all 50 states with claims against their brokerage firms. Since its founding in 2010, The White Law Group has handled over 800 FINRA arbitration cases.
Last modified: March 27, 2025
