Dennis David Karjala, Formerly of LPL Financial, Suspended by FINRA Following Allegations of Providing a Guarantee Against Losses

INVESTORS: Former LPL Financial broker Dennis David Karjala was barred by FINRA following allegations he provided a guarantee against loss to a customer.

Dennis David Karjala (CRD: 5918770) was registered as a broker with LPL Financial from 2019 until 2021. Karjala was previously registered as a broker with Wells Fargo from 2015 until 2019.

Karjala has two disclosures on his BrokerCheck report. 

October 2022 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Without admitting or denying the findings, Karjala consented to the sanctions and to the entry of findings that he provided a guarantee against loss to a customer. The findings stated that Karjala’s customer made an inquiry via text message about a mutual fund investment Karjala had recommended. In his response, which Karjala sent to the customer via text message using his personal cell phone, he stated that he would give the customer money to guarantee against any future losses in the investment. The findings also stated that Karjala sent the customer text messages that violated the content standards for registered representatives’ communications with the public. Karjala stated that a mutual fund in which the customer invested charged only an upfront fee, rather than any additional fees, even though the mutual fund charged ongoing fees. Karjala also stated that the customer already lost 30 percent by holding cash, without providing a basis for calculation. In addition, Karjala stated that he was certain the customer would make plenty of money before retirement and that the customer’s investment should double. These statements were false, exaggerated, unwarranted, promissory and/or misleading. The findings also included that Karjala caused his member firm to maintain incomplete books and records. Karjala exchanged text messages related to securities business with the customer using his personal cell phone and outside of any firm-approved application. Karjala did not provide copies of these communications to the firm. As a result, the firm did not capture or preserve these messages.

Resolution: Acceptance, Waiver & Consent (AWC)

Sanctions: Civil and Administrative Penalty(ies)/Fine(s)

Amount: $10,000.00

Sanctions: Suspension

Registration Capacities Affected: All Capacities

Duration: Three Months

Start Date: 11/7/2022

End Date: 2/6/2023

October 2021 Employment Separation After Allegations

Firm Name: LPL Financial, LLC

Termination Type: Discharged

Allegations: Used Firm-unapproved messaging application to communicate with customer and provided statements guaranteeing against investment loss.

Broker Comment: I vehemently deny failure to report complaint. I only learned of the complaint when LPL compliance contacted me. The net result loss was approximately $400.

The Sonn Law Group is currently investigating allegations surrounding Dennis David Karjala. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.