Investor Lawsuit Investigation – Nicholas Stovall
The White Law Group is investigating potential securities claims involving former financial advisor Nicholas Edward Stovall (CRD#: 5581487). According to the Financial Industry Regulatory Authority (FINRA), Stovall has been barred from acting as a broker or associating with any broker-dealer firm.
Stovall was previously registered both as a broker and as an investment adviser. He spent most of his career with Gradient Securities, LLC (2009–2023), with earlier stints at West America Securities Corp and Edward Jones.
Customer Complaints and Disclosures
FINRA BrokerCheck reports six disclosures on Stovall’s record, including customer disputes, regulatory actions, and employment terminations:
• May 8, 2025 – FINRA Bar (AWC)
FINRA alleged that Stovall participated in private securities transactions totaling $1.4 millionwithout disclosing or seeking firm approval. The products involved promissory notes issued by entities engaged in financing construction companies. Six customers invested over $1.1 million, and Stovall personally purchased a $300,000 note. The issuers later defaulted and regulators alleged the notes were part of a fraudulent scheme. Stovall consented to a permanent bar.
• July 20, 2023 – Minnesota Regulatory Action
The Minnesota Department of Commerce alleged that Stovall recommended promissory notes issued by Premier Global Corporation (PGC), Premier Factoring, LLC (PF-LLC), and Premier Factoring Group, LLC (PFG-LLC) to six Minnesota clients between 2018 and 2021. These investors purchased over $1.1 million in notes, suffering substantial, if not total, losses. Regulators alleged violations of suitability and disclosure rules. Stovall was barred for three years, fined $15,000, and ordered to cease and desist.
• July 21, 2023 – Employment Separations
Stovall resigned from both Gradient Advisors and Gradient Securities following allegations that he solicited unregistered promissory notes, failed to disclose outside activities, and did not timely report a regulatory subpoena.
• July 5, 2023 – Customer Dispute (Settled)
A FINRA arbitration claim sought $350,000 in damages. The matter was settled for $150,000.
• March 12, 2018 – Customer Dispute (Denied)
A client alleged they were provided incorrect terms for a product. The claim was denied by the annuity issuer.
Risks to Investors
Investments in promissory notes such as those issued by Premier Global Corporation, Premier Factoring, LLC, and Premier Factoring Group, LLC carry high risks. These products are often illiquid, speculative, and vulnerable to fraud or default. Regulators in multiple states have warned that many promissory note schemes are structured to mislead investors into believing the notes are secure, when in fact they may be tied to failing or fraudulent businesses.
Recovery Options for Investors
Financial advisors and their firms are required to ensure that investment recommendations are suitable and that all outside business activities are disclosed. If a broker sells unapproved or fraudulent products, the broker-dealer may be liable for investor losses.
Investors may be able to pursue recovery through a FINRA arbitration claim, which is typically faster and more cost-effective than a class action lawsuit.
FINRA Arbitration vs. Class Action
While class actions may take years and provide limited recovery, FINRA arbitration allows investors to bring claims directly against the brokerage firms that approved or failed to supervise the advisor. Arbitration panels can award compensatory damages, interest, and costs.
Free Consultation with Securities Attorneys
If you invested with Nicholas Stovall and suffered financial losses, you may be entitled to recover your investment through FINRA arbitration.
The White Law Group has over 30 years of experience representing investors in claims against financial professionals and brokerage firms nationwide.
For a free consultation, please call (888) 637-5510 or visit www.whitesecuritieslaw.com.
Frequently Asked Questions (FAQs)
What promissory notes was Stovall accused of selling?
Regulators allege that he recommended notes issued by Premier Global Corporation, Premier Factoring, LLC, and Premier Factoring Group, LLC, which later defaulted and resulted in investor losses.
Can I recover losses from these promissory notes?
Yes. If your advisor recommended unsuitable or fraudulent products, you may have claims against the supervising brokerage firm through FINRA arbitration.
Is Nicholas Stovall still a registered broker?
No. FINRA has permanently barred him from the securities industry. He is no longer allowed to act as a broker or investment adviser.
Last modified: September 18, 2025
