Financial Advisor Lester “Chad” Burroughs Barred after Pleading Guilty of Fraud
The White Law Group Continues to investigate potential securities fraud claims involving financial advisor Lester “Chad” Burroughs.
In April 2020 Burroughs was reportedly found guilty of wire fraud and sentenced to 33 months in prison followed by three years of supervised release, for allegedly misappropriating approximately $575,000 from investment clients, most of whom were elderly, according to a press release.
Burroughs allegedly defrauded three advisory clients out of $575,000 by purportedly convincing them to invest approximately $560,000, some of which he allegedly used to repay the original client approximately $445,000, which reflected the principal invested plus 4 percent annual interest.
According to the complaint, Burroughs allegedly told these advisory clients that he would invest their money in “Guaranteed Interest Contracts” (GIC) with guaranteed annual returns of 4% or 7%. Instead of investing the money in GICs he purportedly kept the funds for himself and “provided clients with fake account statements to hide his theft.”
According to his FINRA BrokerCheck report, Burroughs was reportedly affiliated with the following firms, among others.
09/11/2012 – 12/09/2019, LINCOLN INVESTMENT (CRD#:519), TORRINGTON, CT,
07/26/2012 – 08/08/2012, CROWN CAPITAL SECURITIES, L.P. (CRD#:6312), ORANGE, CA
Burroughs’s broker report indicates that 21 customer complaints have reportedly been filed against him during his 33-year stint in the securities industry. Allegations include improper sales practices and misrepresentations, among others.
Investigating Potential Lawsuits
The White Law Group is investigating potential lawsuits regarding the liability that Burroughs’s employers may have for failure to properly supervise him.
When brokers violate securities laws, such as misappropriating client funds, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in FINRA arbitration claims in all 50 states, including Connecticut. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.
If you are concerned about your investments with Lester “Chad” Burroughs, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
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