Former broker and investment advisor Charles Bernard Lynch, Jr. (CRD #3004877) has been barred by FINRA after 57 customer disputes have been filed against him. His last employer of record was Wells Fargo Clearing Services (aka Wells Fargo Advisors, CRD #19616), where he was employed from 10/05/2012 through 05/02/2016. He was a general securities representative, and was discharged from the firm on April 12, 2016. Since his termination, he has not been associated with any other financial services firm.
Lynch’s previous employment record includes:
- Morgan Stanley (CRD #149777) of Brea, CA, from 06/01/2009 through 10/24/2012
- Citigroup Global Markets (CRD# 7059) of Brea, CA, from 09/27/2005 through 06/01/2009
- Morgan Stanley DW, Inc. (CRD #7556) of Purchase, NY, from 09/14/1999 through 09/27/2005
FINRA has indefinitely barred Lynch from acting as a broker or being affiliated with any financial-related broker firms as of 12/11/2017. This bar is the result of 57 disputes from customers, three of which are still pending and one that was withdrawn.
The allegations state that Lynch and another firm representative recommended and concentrated most of their clients’ investments into risky oil and gas vehicles. Most of these were higher-risk and speculative, and the customer’s investment needs were not taken into consideration when recommending them. FINRA’s investigation found that from November 2012 through October 2015, the portfolios of more than 50 customers were moved primarily into four speculative energy-sector securities. When the energy sector experienced a downturn in 2015, these clients suffered considerable financial losses. Lynch was in violation of FINRA Rules 2111 and 2010.
FINRA stated that Lynch didn’t properly evaluate each customer’s income, needs, experience and other essential profile factors before recommending them and moving the customers’ portfolios. Orders to sell selling the unstable energy-related securities were ignored and not executed. The firm paid a total of $8,546,866.03 for 53 client settlements.
Lynch also had a bankruptcy discharge on 04/11/2017, U.S. Bankruptcy Court, Central District of California (case# 6:17-bk-12996-SC.) Proceedings in the FINRA Arbitration Case#17-00779 against Lynch were stayed by the bankruptcy proceedings.
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