ALLEN ROY ERNST is currently employed as a Broker and/or Investment Adviser at LPL FINANCIAL LLC located at 27258 BALMORAL PL NE, KINGSTON, WA, 98346.
ALLEN ROY ERNST has worked at LPL FINANCIAL LLC since April 12, 2013
Disclosure History
ALLEN ROY ERNST has 1 Disclosure Event(s).
Date: May 24, 2004 Category: Customer Dispute Allegations: THE CUSTOMER'S COMPLAINT ALLEGED UNSUITABILITY.2/00 CLIENTS CALLED TO PARTICIPATE IN IPO. ACCOUNT OPENED WITH$3K.3/00 CLIENTS SOLD HOME.4/00 CLIENTS COMPLETE FF QUESTIONNAIRE.4/00 CLIENTS TRANSFER $300K INTO ML.4/00 FF REPORT PRESENTED TO CLIENTS. INFORMED THEM THAT THEY WOULD NOT BE ABLE TO ACHIEVE THEIR RETIREMENT GOALS UNDER ANY ASSET ALLOCATION GIVEN THEIR SAVINGS.4/00 IGNORING MY ALLOCATION ADVICE, CLIENTS REQUESTED I CONSTRUCT A MODERATELY AGGRESSIVE STOCK PORTFOLIO FOR THEM.4/00 CLIENTS WERE PRESENTED WITH PORTFOLIO OF MOSTLY BLUE-CHIP STOCKS THAT HAD BEEN PERFORMING WELL. THEY RESEARCHED THE STOCKS AND REJECTED THE OIL & GAS STOCKS ON PERSONAL GROUNDS, THEREBY INCREASING THEIR EXPOSURE TO MORE VOLATILE SECTORS.5/00 CLIENTS BOUGHT 16 STOCKS IN THEIR ACCOUNT AFTER HAVING RESEARCHED THEM. THE CLIENTS WERE LATER CAUGHT IN A LIE DURING ARBITRATION THAT THEY HAD NOT RESEARCHED THE STOCKS.SUMMER '00 CLIENTS BEGIN FRIVOLOUSLY SPENDING ON MARGIN WHILE I WAS AWAY ON VACATION ROUGHLY ABOUT THE SAME TIME THE MARKET BEGINS TO FALTER. THEY SOLD THEIR POORER PERFORMING STOCKS. THE CLIENTS WERE LATER CAUGHT LYING DURING ARBITRATION THAT I HAD NOT GIVEN THEM ADVICE ON HOW TO MANAGE THEIR SITUATION.9/00 CLIENTS BUY HOUSE ON SIGNIFICANT ACREAGE USING A PORTION OF THEIR ACCOUNT ON MARGIN.10/00 PROMPTLY REPAY MARGIN BALANCE WITH PROCEEDS FROM OUTSIDE CD THAT MATURED.FALL '00 THROUGH SUMMER '01 ACCOUNT VALUE FALLS. CLIENTS CONTINUE TO HOLD STOCKS, AGAINST MY ADVICE. CLIENTS IRRESPONSIBLY SPEND ON MARGIN AGAIN, AGAINST MY ADVICE. CLIENTS LATER CAUGHT IN LIE DURING ARBITRATION THAT THERE WAS LITTLE CONTACT BETWEEN THEM AND I DURING THIS TIME.FALL '01 CLIENTS BEGIN RECEIVING MARGIN CALL. I ADVISE THEM TO SELL EVERYTHING AND REALLOCATE. THEY ELECTED, AGAINST MY ADVICE, TO SELL ONLY ENOUGH TO MEET THE MARGIN CALLS.FALL '01 I TERMINATE MY RELATIONSHIP WITH CLIENTS AND TRANSFER THEIR ACCOUNT TO ANOTHER BROKER.SPRING '02 CLIENTS FILE COMPLAINT LETTER WITH ML AND NASD CITING UNSUITABILITY.SUMMER '02 STILL NOT LISTENING TO ADVICE, CLIENTS RECEIVE LETTER FROM ML STATING THAT IF THEY CONTINUED TO HOLD STOCKS IN THEIR ML ACCOUNT THEY WOULD BE DOING SO AT THEIR OWN RISK.SUMMER '02 CLIENTS EVENTUALLY SELL THE REMAINING STOCKS IN THEIR ACCOUNT.FALL '02 NASD ISSUES LETTER OF CAUTION FINDING UNSUITABILITY.WE WERE STUNNED THAT 1) THEY WERE AWARDED A MONETARY AMOUNT AFTER HAVING BEEN CAUGHT IN SO MANY LIES, AND 2) THEY WERE THE ONES THAT HAD REQUESTED THE STOCK PORTFOLIO IN THE FIRST PLACE. IT IS INTERESTING TO NOTE THAT IF THEY HAD ACTUALLY FOLLOWED MY ADVICE (NOT SPENT ON MARGIN) AND ADHERED TO MY AND MERRILL'S ADVICE AND RESEARCH TO STAY-THE-COURSE OF THEIR ORIGINAL INVESTMENT, THEY WOULD HAVE EVENTUALLY RECOUPED MOST OF THEIR LOSSES, AND PERHAPS COME OUT AHEAD. Damage Amount Requested: $224,278.00 Damages Granted: $186,532.00 02-06825
More Information
All individuals registered to sell securities or provide investment advice are required to disclose customer complaints and arbitrations, regulatory actions, employment terminations, bankruptcy filings and criminal or civil judicial proceedings.
A disclosure includes information about customer disputes, disciplinary events and financial matters on the broker's record as reported by securities regulators, the individual broker, and any involved firms. Some of these items may involve pending actions or allegations that have not been resolved or proven. The presence of a disclosure does not automatically indicate any wrongdoing.
BrokerCheck is the source of the data included in this Report. The data was compiled on June 29, 2018.
To view the full report for ALLEN ROY ERNST, click here.
The use of BrokerCheck data is subject to the BrokerCheck Terms of Use.
×
Outdated Information
If you discover any errors or outdated information on this Website, please contact us and we will promptly correct such errors or outdated information.
If BrokerCheck® is the source of such errors or outdated information, please contact FINRA at (301) 590-6500.
×
BrokerSearch Removal
Brokersearch.info will not fully remove items from this Website without an applicable court order designating them for removal. Investors rely on the information available on this Website to decide whether to choose or retain a broker or investment adviser.
Upon written request, we may remove certain page(s) from appearing in search engine results using the robots.txt protocol.
When a person searches for your name using Google, Bing, Yahoo! and other search engines the page(s) from Brokersearch.info would not appear in the search results.
Please contact us to learn more about Search Engine Removal.