March, 2025 | Based in Orange, CA
If you’ve suffered financial losses while working with financial advisor Derek Guy McLean, don’t wait to take action. Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation. Time limits apply to investment fraud claims, so prompt action is essential to protect your rights.
Essential Information About Derek Guy McLean
- Full Name: Derek Guy McLean
- CRD Number: 1939560
- Current Location: Orange, CA
- Current Employers: Cetera Advisors LLC and Cetera Investment Advisers LLC
- Office Address: 333 South Anita Drive Suite 700, Orange, CA 92868
- Registration Status: Currently registered with FINRA and 17 U.S. states/territories
- Experience: In the industry since 1989 (over 35 years)
- FINRA BrokerCheck: Two customer disputes settled for $196,000 (2024) and $22,500 (2021)
- Previous Employers: First Allied Securities, First Allied Advisory Services, FFP Securities
- Ability to Recover Losses: Potentially eligible for FINRA arbitration if losses occurred within the last 6 years
The Investigation into Derek Guy McLean’s Investment Practices
Recent investigations have uncovered concerning patterns in the investment recommendations made by Derek Guy McLean, a financial advisor currently affiliated with Cetera Advisors LLC and Cetera Investment Advisers LLC in Orange, California. With a career spanning more than three decades, McLean has built a significant client base, but recent legal actions have cast a shadow over his professional practices.
Our law firm has been tracking McLean’s case closely as part of our commitment to advocate for investors who may have been harmed by unsuitable investment recommendations or potential breaches of fiduciary duty. The details emerging from these investigations raise serious questions about the nature of McLean’s investment advice and whether his clients’ best interests were truly the priority.
Detailed Analysis of Recent Claims Against McLean
The most recent FINRA BrokerCheck report reveals two significant customer disputes against Derek McLean that resulted in substantial settlements. The most concerning case was settled in August 2024 for $196,000 – a settlement amount that signals serious allegations were involved.
According to the filed complaint, an investor alleged that McLean recommended unsuitable investments, specifically an interval fund that was inappropriate for the client’s risk tolerance and financial objectives. The complaint further alleged breaches of fiduciary duty, contract violations, inadequate supervision, and even financial elder abuse – a particularly troubling accusation that suggests potential exploitation of vulnerable investors.
The second settled complaint from October 2021 involved $22,500 in damages and centered on allegations that McLean recommended “complex investments that were unsuitable.” Specifically, these investments included variable annuities and real estate securities, both products that often carry high fees, significant surrender charges, and complex structures that can be difficult for average investors to fully understand.
A concerning pattern emerges from these complaints: recommendations of complex, potentially illiquid investments that may have generated substantial commissions for the advisor while exposing clients to inappropriate levels of risk.
Historical Context and Professional Background
Derek McLean’s professional history dates back to 1989 when he began his career with First American National Securities in Duluth, Georgia. Over the decades, he has worked for several firms:
- First American National Securities (1989-1990)
- Planner’s Independent Management (1990-1991)
- FFP Securities (1991-2008)
- First Allied Securities (2008-2022)
- Currently with Cetera Advisors LLC and Cetera Investment Advisers LLC (since 2022/2020)
McLean holds several professional qualifications, including Series 6, 7, 26, 63, 65, and 99 licenses, which enable him to sell a wide range of investment products including mutual funds, stocks, bonds, and variable contracts. He is registered in 17 states, with a significant presence in California and Texas markets.
Notably, McLean also operates another business, Orange Capital Management Inc., where he reportedly spends approximately 160 hours per month as an Investment Adviser Representative. This substantial time commitment to a separate business raises questions about potential conflicts of interest and whether clients of either entity receive the full attention and care they deserve.
Red Flags in McLean’s Investment Recommendations
Based on the complaints filed against McLean, several red flags become apparent that investors should be aware of:
1. Unsuitable Investment Recommendations
The core allegation in both settled complaints involves unsuitable investment recommendations – a fundamental violation of FINRA Rule 2111. This rule requires that financial advisors have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer based on their investment profile.
The specific mention of interval funds and complex real estate securities is noteworthy. Interval funds are particularly problematic because:
- They typically offer limited liquidity, only allowing investors to redeem shares at specific intervals (often quarterly).
- They often invest in illiquid assets like private debt, real estate, or other alternative investments.
- They can carry higher fees than traditional mutual funds.
- They are generally inappropriate for investors who may need access to their money on short notice.
2. Potential Elder Abuse
The allegation of “financial elder abuse” in the 2024 settlement is particularly troubling. Financial advisors who work with elderly clients have an enhanced responsibility to ensure recommendations are appropriate given the client’s age, retirement status, and potential cognitive vulnerabilities.
Senior investors often have:
- Limited ability to recover from significant losses
- Fixed incomes with little opportunity to replace lost capital
- Immediate or near-term need for income
- Potential cognitive challenges that may impact financial decision-making
When advisors recommend complex, illiquid, or high-risk investments to elderly clients, they may be violating not only FINRA rules but also state elder abuse statutes.
3. Inadequate Supervision
Both complaints mentioned “failure to supervise” as an allegation. Under FINRA Rule 3110, brokerage firms have a duty to supervise their registered representatives and ensure compliance with applicable securities laws and regulations.
The fact that both complaints included this allegation suggests potential systemic issues at the firms where McLean worked. Adequate supervision should have identified and prevented unsuitable recommendations before they harmed investors.
Legal and Regulatory Framework
Financial advisors like Derek McLean are subject to numerous rules and regulations designed to protect investors:
FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade
This broad ethical standard requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Recommending unsuitable investments that prioritize advisor compensation over client interests would violate this fundamental rule.
FINRA Rule 2111: Suitability
As mentioned earlier, this rule requires that advisors recommend only suitable investments based on the customer’s age, financial situation, tax status, investment objectives, and other factors.
FINRA Rule 2020: Use of Manipulative, Deceptive or Other Fraudulent Devices
This rule prohibits brokers from using manipulative, deceptive, or fraudulent devices or contrivances in connection with securities transactions. Misrepresenting the risks or characteristics of complex products like interval funds could violate this rule.
FINRA Rule 3110: Supervision
Brokerage firms must establish and maintain a system to supervise the activities of their registered representatives that is reasonably designed to achieve compliance with securities laws and regulations.
Fiduciary Duty
In some contexts, particularly when acting as an investment adviser (as McLean does through Cetera Investment Advisers LLC), advisors owe clients a fiduciary duty – the highest standard of care under the law. This requires putting clients’ interests ahead of their own and disclosing all material facts and conflicts of interest.
Options for Investors Who Have Worked with Derek McLean
If you’ve worked with Derek McLean and experienced losses or believe you were sold unsuitable investments, you have several potential avenues for recovery:
1. FINRA Arbitration
FINRA provides an arbitration forum for resolving disputes between investors and brokers. This process is typically faster and less expensive than court litigation. Key considerations for FINRA arbitration include:
- Time Limitations: Claims generally must be filed within six years of the event giving rise to the dispute.
- Process: The arbitration process involves filing a statement of claim, selection of arbitrators, discovery, a hearing, and an award decision.
- Results: Arbitration decisions are binding and difficult to appeal.
2. Securities Class Actions
In some cases, when numerous investors have suffered similar harms from the same misconduct, a securities class action may be appropriate. This allows investors to pool resources and pursue recovery collectively.
3. Direct Negotiation
Sometimes, before pursuing formal litigation, attorneys can negotiate directly with the brokerage firm to reach a settlement that compensates investors for their losses.
Steps You Should Take If You’re Affected
If you’ve worked with Derek McLean and are concerned about your investments, consider these immediate steps:
1. Gather Documentation
Collect all relevant documents, including:
- Account statements
- Communications with McLean or his firms
- Investment prospectuses or offering documents
- Notes from conversations about your investment objectives
- Any risk tolerance questionnaires you completed
2. Review Your Investments
Examine your portfolio to identify potentially problematic investments, particularly:
- Interval funds
- Non-traded REITs or other illiquid real estate investments
- Variable annuities with high fees or surrender charges
- Complex products that weren’t fully explained
3. Calculate Your Losses
Document any losses you’ve experienced, including:
- Direct investment losses
- Opportunity costs
- Fees and commissions paid
- Tax consequences
4. Consult with a Specialized Attorney
Investment fraud cases require specialized knowledge of securities laws and regulations. An experienced securities attorney can:
- Evaluate the strength of your potential claims
- Identify applicable legal theories
- Determine appropriate venues for seeking recovery
- Navigate FINRA’s arbitration process
How Our Investment Fraud Attorneys Can Help
Our law firm specializes in representing investors who have suffered losses due to broker misconduct. In cases involving Derek Guy McLean and similar situations, we offer:
Comprehensive Case Evaluation
We conduct a thorough forensic analysis of your investment portfolio, examining transaction patterns, fee structures, and suitability factors to identify potential misconduct.
Expert Representation in FINRA Arbitration
Our attorneys have extensive experience navigating FINRA’s arbitration process and have recovered millions for investors harmed by unsuitable investment recommendations.
Contingency Fee Structure
We work on a contingency basis – you pay nothing unless we recover money for you. This aligns our interests with yours and ensures we’re motivated to maximize your recovery.
Specialized Knowledge of Complex Investments
Our team has deep expertise in the complex products that often lead to investor losses, including interval funds, variable annuities, non-traded REITs, and structured products.
Time Is of the Essence in Investment Fraud Claims
Securities laws impose strict time limitations on bringing claims for investment fraud or misconduct. In most cases, FINRA arbitration claims must be filed within six years of the events giving rise to the dispute. State securities laws and other applicable statutes may impose even shorter deadlines.
If you believe you’ve been harmed by Derek McLean’s investment recommendations, don’t delay in seeking legal advice. Your financial future may depend on prompt action to protect your rights and pursue recovery of your losses.
If you’ve experienced investment losses while working with Derek Guy McLean or any other financial advisor, we’re here to help evaluate your case and explain your options. Call 800-950-6553 or submit our secure online form to schedule your confidential, no-obligation consultation with one of our experienced investment fraud attorneys.
