National investment fraud lawyers KlaymanToskes is investigating John A. Dougherty, a/k/a Jack Dougherty (CRD# 3018615) of LPL Financial. The Blue Bell, Pennsylvania-based stockbroker and investment adviser was named in a South Carolina state court lawsuit, alleging Dougherty over-leveraged his investments with a $5 million securities-based credit line before the March 2020 (Covid-19) stock market crash.
According to FINRA’s BrokerCheck Report, Dougherty was previously registered with Wells Fargo Clearing Services, LLC from 2013 to 2021 in Collegeville, PA. Dougherty has an additional BrokerCheck business activity disclosed, doing business at Gladstone Wealth Partners (as an entity for LPL business) in Conshohocken, PA.
Investors that suffered losses with John A. Dougherty at Wells Fargo, LPL Financial and/or Gladstone Wealth Partners should contact attorney Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss their recovery options at no cost.
According to FINRA BrokerCheck, on January 19th, 2023, an investor filed a lawsuit in South Carolina state court against LPL Financial stockbroker and investment adviser John Aloysius Dougherty, a/k/a Jack Dougherty. The investor alleges Dougherty recommended a wealth management strategy which was inappropriate for his investment objectives and risk tolerance, and that he allegedly incurred millions in losses as a result of the strategy.
The investor alleges Dougherty encouraged him to take out a $5 million securities-based loan to cover taxes and related fees after the investor sold his business in 2013. Dougherty allegedly told the investor that the loan would continue to generate income and pay down interest. This purportedly allowed Dougherty to benefit by receiving credit for the client paying interest payments on the loan and from the increased management fees.
The investor’s accounts would have needed to generate an over 3.5% return, which is in our opinion at least more than double what he should have paid, to pay off the advisory fee and interest on the account. When the Covid-19 pandemic struck in March 2020, the investor lost millions and became “locked in losses,” unable to recoup upon the market’s rebound months later.
In late 2020, Dougherty began a frantic attempt to recover the investor’s funds by allegedly purchasing precious metal stocks and day-trading Exchange-Traded Funds (“ETFs”). Dougherty additionally concentrated a large portion of investor’s funds in a marijuana stock called Jamaica Cures, which Dougherty had served as a director of and invested in himself.
KlaymanToskes believes FINRA arbitration is usually the best course of action for investors that suffered significant losses at their full-service brokerage firms. FINRA arbitration is a more cost-effective process for investors, often occurring with increased speed and efficiency over a court proceeding. FINRA arbitration also allows investors to maintain greater flexibility over their case.
Former and current customers of John A. Dougherty who have experienced significant investment losses are encouraged to contact securities attorney Lawrence L. Klayman, Esq. at 1-888-997-9956 or lklayman@klaymantoskes.com.
Our firm offers legal services on a contingency fee basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com