Last Updated: October 2024 (Highlands Ranch, Colorado)
J Craig McIlroy Financial Advisor Fraud Alert
National securities fraud lawyers Patil Law P.C. are investigating broker J Craig McIlroy (CRD #1422508), who is currently registered with LPL Financial LLC, Highlands Ranch, Colorado. He has been involved in several customer disputes, including allegations of unsuitable investments in oil & gas programs and private placement annuities.
J Craig McIlroy (CRD #1422508) is a financial advisor with extensive experience, currently employed by LPL Financial LLC. However, his career has been marked by multiple customer disputes involving allegations of unsuitable investment recommendations, particularly in high-risk oil & gas programs and private placement annuities. Below, we provide further details on McIlroy’s professional background and the customer complaints that may raise concerns for potential investors.
Critical insights about Highlands Ranch CO stockbroker J Craig McIlroy:
- Advisor Name: J Craig McIlroy
- CRD: 1422508
- Location: Highlands Ranch, Colorado
- Current Employer: LPL Financial LLC
- Classification: Stockbroker + Financial Advisor
- Primary Location: Highlands Ranch, CO
- Can J Craig McIlroy be sued in private FINRA arbitration: Yes
- Has Mr. McIlroy been barred by FINRA: No
- Highest Damages Allegation: $1,179,426
- Highest Settlement: $1,179,426
- Pending Customer Dispute: Yes
If you have suffered investment losses by J Craig McIlroy, we strongly encourage you to exercise your rights to experienced legal representation. Recover what is owed to you by retaining a breach of fiduciary duty lawyer. Reach out to the legal team at Patil Law P.C. via the secure online form or call the firm directly toll-free at (800) 950-6553.
Lost Money With Stockbroker J Craig McIlroy?
A customer of Lincoln Financial Advisors filed a dispute against J Craig McIlroy in December 2022, alleging unsuitable investment recommendations in an oil & gas program, resulting in $200,000 in claimed damages. This case was settled for $133,500 on August 17, 2023. Another dispute filed in December 2011 (FINRA Docket #11-04598) alleged that McIlroy recommended a private placement annuity that was unsuitable for the client’s low-risk tolerance. This case was settled for $228,786 on June 19, 2012.
In a separate case (FINRA Docket #11-00164), multiple clients alleged that McIlroy recommended private placement annuities between 2008-2010, which were inconsistent with their conservative investment objectives. This case resulted in a $1,179,426 settlement on June 19, 2012.
There is a currently pending dispute involving an oil & gas investment that was allegedly unsuitable, filed in February 2024 (FINRA Docket #24-00348), with $50,000 in damages claimed.
Allegations of Broker Misconduct Against J Craig McIlroy
Customers of J Craig McIlroy have alleged the following misconduct in connection with his handling of their accounts:
- Unsuitable Investment Recommendations: McIlroy has faced multiple allegations that he recommended investments, including oil & gas programs and private placement annuities, which were not suitable for his clients’ financial objectives.
Brokers and their firms are required to comply with FINRA Rule 2111, which mandates that investment recommendations must be suitable for the customer’s financial situation and objectives. The allegations against McIlroy suggest potential violations of this suitability rule.
FINRA Rule 2111, the Suitability Rule, requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s financial situation, needs, and investment profile. This rule covers the three key obligations: reasonable-basis suitability (the recommendation must be suitable for at least some investors), customer-specific suitability (the recommendation must be appropriate for that particular customer), and quantitative suitability (ensuring that the number of recommended transactions is not excessive). Related rules include FINRA Rule 2090, the Know Your Customer Rule, which mandates that brokers understand their clients’ investment profiles to provide suitable advice.
Broker Experience Summary
J Craig McIlroy (CRD #1422508) has been working in the financial industry for several decades. Currently employed by LPL Financial LLC since August 5, 2024, McIlroy holds registration in 22 U.S. states and territories, including Colorado, California, and Texas. Throughout his career, McIlroy has passed two general industry/product exams, including the Series 7 General Securities Representative Examination in 1985 and the Securities Industry Essentials Examination in 2018. He is also registered with one self-regulatory organization (FINRA) and has held prior registrations with firms such as Lincoln Financial Advisors Corporation and The Lincoln National Life Insurance Company.
McIlroy has been involved in various investment advisory roles over the years, and he holds a Certified Financial Planner designation, further demonstrating his professional qualifications in financial planning and advising. He has worked across multiple firms and has accumulated a broad range of experience in financial advising.
Negative Disclosures and Customer Disputes
J Craig McIlroy has been involved in four customer disputes, three of which have been settled, and one is currently pending:
- Settlement: A dispute filed in December 2022 alleged that McIlroy recommended an unsuitable oil & gas investment. The claimant sought $200,000 in damages, and the case was settled for $133,500 on August 17, 2023.
- Settlement: In December 2011, a customer filed a complaint (FINRA Docket #11-04598), claiming McIlroy recommended a private placement annuity that was unsuitable for the client’s low-risk profile. The case was settled for $228,786 in June 2012.
- Settlement: A similar case, filed in January 2011 (FINRA Docket #11-00164), alleged McIlroy’s recommendations of private placement annuities between 2008-2010 were inconsistent with the clients’ conservative investment objectives. This case resulted in a $1,179,426 settlement on June 19, 2012.
- Pending Case: A dispute filed in February 2024 (FINRA Docket #24-00348) alleges that McIlroy recommended an unsuitable oil & gas investment, with the claimant seeking $50,000 in damages. This case is still pending.
Allegations and Accusations
Several allegations have been made against J Craig McIlroy related to his investment recommendations:
- Unsuitable Investment Recommendations: McIlroy has faced accusations of recommending high-risk oil & gas programs and private placement annuities, which clients claim were unsuitable given their conservative financial objectives.
These allegations suggest possible violations of FINRA Rule 2111, which mandates that investment recommendations be suitable for the client’s financial situation and objectives. No formal regulatory actions or terminations have been reported against McIlroy, but these customer disputes have raised concerns regarding his investment practices.
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have suffered investment losses in an account handled by J Craig McIlroy or have a question about the performance of your account, please contact Attorney Patil online or (800) 950-6553 for a free initial consultation.
Our cases are handled on a contingency basis. We don’t get paid unless we win for you.
