Derek Lee Copeland, of Charlotte, North Carolina, a stockbroker registered with LPL Financial LLC, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in all capacities by FINRA because Copeland engaged in undisclosed private securities transactions or “selling away” and communicated with customers through unapproved methods. Letter of Acceptance, Waiver, and Consent No. 2023077756701 (March 24, 2025).
According to the AWC, from March 2020 through January 2023, Copeland participated in 74 private securities transactions without providing prior written notice to his firm, LPL Financial, in violation of FINRA Rule 3280(b). These transactions included investments in promissory notes for a wholesale flooring company and limited liability companies (LLCs) created for various ventures such as real estate development and investment in a furniture retailer. In total, 27 individuals—22 of whom were LPL customers—invested nearly $11,000,000.00. Copeland earned $173,000 from these transactions in the form of consulting, management, and recommendation fees.
Copeland violated FINRA Rule 3280, which requires stockbrokers to provide written notice before participating in any securities transaction outside their employment with a securities broker dealer. In addition, Copeland falsely attested in 2020-2022 that he did not solicit investments not approved by LPL. These actions also constituted a violation of FINRA Rule 2010, which mandates that stockbrokers uphold high ethical standards in the securities industry.
Additionally, Copeland used unapproved communication channels—including personal email, text messaging, and online platforms—to conduct securities-related business. Between March 2020 and January 2023, he exchanged over 2,250 such communications. This conduct violated FINRA Rule 4511, which requires securities broker dealers to preserve business-related communications, as well as Rule 2010.
FINRA Public Disclosure also shows that on September 21, 2023, a customer initiated investment related FINRA securities arbitration claim involving Copeland’s conduct was settled for $175,000.00 in damages based upon allegations that Copeland made the unsuitable investment recommendation of stocks, options, and real estate securities when Copeland was associated with LPL Financial LLC. FINRA Arbitration No. 23-00566.
Copeland was associated with LPL Financial LLC in Charlotte, North Carolina from March 5, 2020 to January 30, 2023. LPL Financial discharged Copeland on January 18, 2023, citing his undisclosed business activities.
