Lester William Burroughs (also known as Chad Burroughs) of Torrington, Connecticut, a stockbroker formerly registered with Lincoln Investment Planning LLC (Lincoln Investment), is referenced in a customer initiated investment related FINRA securities arbitration claim where the customer sought compensatory damages supported by accusations of misrepresentations relating to fixed and variable annuities when Burroughs was employed by Lincoln Investment. FINRA Arbitration No. 21-02595 (October 19, 2021). According to the claim, the customer was placed into unsuitable investments. The claim also alleges Lincoln Investment’s failure to supervise Burroughs’s annuity transactions.
FINRA Public Disclosure shows that Burroughs has been identified in twenty more customer initiated investment related disputes regarding allegations of Burroughs’ wrongdoing while employed by securities broker dealers, including Pruco Securities, Lincoln Investment Planning, Brookstone Securities Inc., Crown Capital Securities LP, and Woodbury Financial Services Inc. On December 21, 2019, a customer filed an investment related complaint involving Burroughs’ conduct in which the customer requested compensatory damages based upon allegations of sales practice violations relating to real estate security, mutual fund, and annuity transactions.
Burroughs is also the subject of a customer initiated investment related written complaint on October 13, 2020, in which the customer requested $126,380.00 in damages supported by allegations of Burroughs’ omissions concerning variable annuity and fixed annuity surrender charges while Burroughs was employed by Lincoln Investment Planning.
Burroughs is also identified in a customer initiated investment related written complaint on January 8, 2020, where the customer sought compensatory damages supported by accusations of Burroughs falsely stating that the customer would not need to make ongoing premium payments on their universal life insurance policies. The complaint alleges that the insurance policies lapsed because of the failure to pay premiums.
Another customer initiated investment related arbitration claim concerning Burroughs’ activities was resolved for $200,000.00 in damages founded on accusations of unsuitable investment recommendations, misappropriation, and elder abuse by Burroughs concerning guaranteed investment contracts, mutual funds, stocks, and variable annuities transactions arranged through Burroughs when he was associated with Lincoln Investment, Crown Capital Securities, Brookstone Securities, and Woodbury Financial Services. FINRA Arbitration No. 19-03658 (January 27, 2021). The claim alleges that the customer lost the ability to access their money given the illiquidity of the investments. According to the claim, the customer sustained substantial losses because of Burroughs.
On July 2, 2021, an additional customer initiated investment related arbitration claim regarding Burroughs’ activities was settled for $50,000.00 in damages founded on allegations of unsuitable recommendations and negligent supervision concerning fixed and variable annuities sold to the customer. FINRA Arbitration No. 20-01178. The claim alleges sales practice violations at Lincoln Investment, Crown Capital, and Brookstone Securities.
On April 14, 2021, a different customer initiated investment related arbitration claim concerning Burroughs’ conduct was resolved for $125,000.00 in damages based upon accusations of negligent supervision, fraudulent sales of investments, improper annuity transactions, and unsuitable life insurance transactions during the time that Burroughs was employed by Lincoln Investment Planning, Brookstone Securities, and Woodbury Financial Services. FINRA Arbitration No. 20-02144. According to the claim, the customer was led to believe that their investments were safe fixed-income investments. The claim alleges damages on guaranteed investment contracts, insurance products, and annuities.
Burroughs has been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment advisor founded on Burroughs’ plea of guilty to a count of wire fraud, a federal offense. In the Matter of Lester W. Burroughs, Administrative Proceeding File No. 3-19657. SEC’s Order notes that Burroughs defrauded investors out of $575,000.00. The investors’ assets were misappropriated in part by Burroughs making misleading or false statements to them about the use of invested funds. Burroughs used the money for himself instead of for the benefit of investors.
SEC’s complaint against Burroughs, which came before Burroughs’ guilty plea, alleged that fake investments were sold by Burroughs to customers and that Burroughs engaged in activities resembling a Ponzi scheme, as he would pay existing advisory customers with money he obtained from new advisory customers. SEC alleged that Burroughs violated Investment Advisers Act of 1940 Sections 206(1) and 206(2).
Burroughs was registered with Lincoln Investment between September 11, 2012 and December 9, 2019.
He was subsequently sentenced to 33 months in prison for committing fraud.
