Investor Lawsuit Investigation – Lanny Howarter
The White Law Group is investigating potential FINRA arbitration claims involving former financial advisor Lanny Howarter, in light of numerous customer complaints involving alternative investment products.
According to FINRA’s public records (CRD#: 813591), Howarter was previously registered with Crown Capital Securities, L.P. in El Cajon, California. His Broker Check profile reportedly reflects nine disclosures, including multiple settled customer disputes and one pending complaint.
Lanny Howarter Customer Complaints
Howarter has reportedly been the subject of at least nine investor complaints, many of which involve unsuitable investment recommendations in illiquid alternative investments such as non-traded REITs and private placement offerings. Allegations reported by customers include:
- Lack of suitability and risk misrepresentation
- Impermissible overconcentration in alternative products
- Failure to perform adequate due diligence
- Omission of material facts regarding illiquidity and risk
- Breach of fiduciary duty
- Fraud and negligent supervision
Key complaints and settlements:
- A pending complaint filed in October 2024 alleges breach of fiduciary duty, unsuitable recommendations, and misrepresentation involving alternative investments. Damages sought total $325,000.
- In 2021, two separate complaints were filed by clients citing unsuitable alternative investment recommendations and a lack of reasonable due diligence. These claims settled for $65,000 and $89,900, respectively.
- In another April 2021 matter, customers alleged material misrepresentations and unsuitable sales of alternative investments. That claim settled for $112,500, while a second complaint filed on the same date settled for $330,000 after damages of over $1.1 million were alleged.
- In 2020, a complaint involving alleged negligence and omission of the illiquid nature of the investments was settled for $100,000.
- A 2017 dispute included claims of fraud and failure to supervise, and settled for $122,000.
- A 2010 complaint alleged fraud and various misrepresentations spanning multiple years of limited partnership sales and resulted in a$250,000 settlement.
The nature and frequency of these disputes suggest serious concerns regarding the suitability of recommendations and the level of due diligence performed.
Risks of Broker Misconduct and Supervisory Failures
Broker misconduct and the improper recommendation of complex alternative investments can cause devastating financial harm to investors. Non-traded REITs, BDCs, and private placements are often high-risk, illiquid products that are not suitable for all investors. When brokerage firms fail to supervise their representatives or allow unsuitable investments, they may be liable for resulting losses.
Recovery Options for Investors
If you suffered investment losses with Lanny Howarter, you may have a right to pursue a recovery claim through FINRA arbitration. The White Law Group is reviewing whether Crown Capital Securities may be liable for failure to supervise Howarter’s actions.
FINRA Arbitration vs. Class Action – What’s the Difference?
Most investor claims are resolved through FINRA arbitration, not class action lawsuits. Class actions typically involve large groups of investors and smaller individual recoveries. In contrast, FINRA arbitration allows investors to pursue compensation tailored to their specific circumstances and portfolio losses. Arbitration is also generally faster than class action litigation.
Free Consultation
The White Law Group has recovered millions of dollars on behalf of investors through FINRA arbitration. If you invested with Lanny Howarter and suffered financial losses, contact our offices at 1-888-637-5510 for a free, confidential consultation.
For more information, visit us at www.whitesecuritieslaw.com.
Frequently Asked Questions (FAQs) – Lanny Howarter
What are the allegations involving Lanny Howarter?
Clients have accused Howarter of making unsuitable investment recommendations, misrepresenting risks, failing to perform due diligence, and breaching fiduciary duties. Many of the disputes involve non-traded REITs and high-commission alternative investments.
Can I recover losses if I invested with Lanny Howarter?
Yes. If your investments were inappropriate or if you were misled, you may be eligible to recover damages through a FINRA arbitration claim.
What is the difference between FINRA arbitration and a class action lawsuit?
FINRA arbitration allows you to pursue an individualized recovery based on your personal investment experience and losses. It is often quicker and more effective than participating in a broader class action suit.
Last modified: June 26, 2025
