Spring, Texas – December 14, 2024 – Earl Eugene Newsome (CRD# 2436856) is a financial advisor currently registered with LPL Financial in Spring, Texas. According to his FINRA BrokerCheck report, Newsome has three customer disputes on his record, including one pending complaint alleging $198,000 in damages related to unsuitable life insurance recommendations. Investors who have worked with Earl Newsome and experienced investment losses should understand their legal rights and options for recovering damages.
BrokerCheck Snapshot
Name: Earl Newsome
CRD #: 2436856
Firm: LPL Financial LLC
Location: Spring, Texas
Years in Industry: 31
Number of Disclosures: 3
Customer Complaint Against Earl Eugene Newsome
Pending Complaint (2025)
A customer complaint filed in August 2025 alleges that Earl Newsome recommended two indexed universal life insurancepolicies in 2016 that were poorly designed and unsuitable for the customers’ financial circumstances. The customers allege that the investment was unsuitable for their financial situation. The complaint, which remains pending, seeks $198,000 in damages.
Date Filed: August 4, 2025
Alleged Damages: $198,000
Product Type: Insurance (Indexed Universal Life)
Employing Firm: Next Financial Group, Inc.
Status: Pending
Settled Customer Dispute (2005)
In 2004, customers filed a FINRA arbitration claim (Case # 04-03855) alleging that Earl Newsome recommended unsuitable variable life insurance while associated with Royal Alliance Associates, Inc. from December 1998 to August 2002. The case was settled in April 2005 for $92,500, with Newsome personally contributing $40,000 to the settlement.
Date Filed: June 7, 2004
Alleged Damages: $284,925
Settlement Amount: $92,500
Newsome’s Contribution: $40,000
Product Type: Insurance (Variable Life)
Employing Firm: Royal Alliance Associates, Inc.
Settlement Date: April 5, 2005
According to the broker statement, the customers stated that in their opinion, the representative “did not engage in intentional or deliberate misconduct” regarding their financial matters. The settlement was reached to avoid the protracted cost of legal proceedings.
Withdrawn Complaint (2008)
A third customer complaint was filed in December 2006 alleging misrepresentation and deceit related to the lapsing of an insurance policy purchased in 1999. The firm offered to reinstate the policy after the customer submitted the required premium payment, but the customer did not submit payment. This complaint was withdrawn in October 2008.
Date Filed: December 28, 2006
Alleged Damages: $0
Product Type: Annuity-Variable
Employing Firm: 1717 Capital Management Company
Status: Withdrawn (October 13, 2008)
Pattern of Complaints / Risk Factors
While each case is unique, complaints of this type may indicate concerns related to unsuitable investment recommendations, inadequate risk disclosures, or a failure to supervise. Investors should carefully review account statements and seek legal guidance if similar issues occurred.
Can Investors Recover Losses?
Investors who were recommended unsuitable or high-risk investments may be entitled to recover their losses through FINRA arbitration. Patil Law, P.C. has over 15 years of experience representing investors in FINRA arbitration and securities litigation, with more than $25 million recovered for clients across 1,000+ cases. We provide a free, confidential consultation to review your potential claim. Our firm works on a contingency fee basis, meaning you pay no attorney fees unless we successfully recover money for you.
About FINRA Arbitration
FINRA arbitration is a streamlined dispute resolution process for securities-related claims. It offers a faster, more cost-effective alternative to traditional court litigation. Most cases are resolved within 12-16 months. Claims generally must be filed within six years of the incident.
Related Brokers and Firms
Earl Newsome is currently registered with LPL Financial. He previously worked at Next Financial Group, Inc., 1717 Capital Management Company, and Royal Alliance Associates, Inc.
For information about other cases involving unsuitable investments, variable annuity fraud, or LPL Financial advisors, visit our practice area pages.
Frequently Asked Questions
What is the complaint against Earl Eugene Newsome?
The pending complaint alleges that Newsome recommended two indexed universal life insurance policies in 2016 that were poorly designed and unsuitable for the customers’ financial circumstances. The customers are seeking $198,000 in damages. The complaint has not been adjudicated or settled.
Can investors recover losses involving LPL Financial?
Yes, investors who have suffered losses due to broker misconduct at LPL Financial or any other brokerage firm may be entitled to recover their losses through FINRA arbitration. Investors have legal rights to pursue claims for unsuitable recommendations, unauthorized trading, misrepresentation, and other forms of misconduct.
What is FINRA arbitration?
FINRA arbitration is a dispute resolution process administered by the Financial Industry Regulatory Authority. It provides an alternative to courtroom litigation for resolving investment-related disputes between investors and brokers or brokerage firms. An arbitration panel hears evidence and issues a binding decision that is enforceable in court.
What does “unsuitable investment” mean?
An unsuitable investment is a recommendation that does not align with an investor’s financial objectives, risk tolerance, investment experience, time horizon, or financial situation. FINRA Rule 2111 requires brokers to have a reasonable basis to believe that a recommended investment is suitable for the customer based on the customer’s investment profile.
How do I look up a broker on BrokerCheck?
To look up a broker on FINRA BrokerCheck, visit brokercheck.finra.org and search by the broker’s name or CRD number. The free report provides information about the broker’s employment history, registrations, exams, and disclosure events such as customer complaints, arbitrations, and regulatory actions.
What should I do if I suspect broker misconduct?
If you suspect broker misconduct, gather all account statements, trade confirmations, and communications with your broker. File a complaint with FINRA and your state securities regulator. Consult with an experienced securities attorney to evaluate whether you have grounds for a FINRA arbitration claim to recover your losses.
About Patil Law, P.C.
Patil Law, P.C. is a securities litigation firm dedicated to representing investors who have suffered losses due to broker misconduct, unsuitable recommendations, and securities fraud. Founded in 2018 by attorney Chetan Patil, the firm focuses exclusively on FINRA arbitration and investment loss recovery.
With over 15 years of combined experience in securities law, Patil Law has successfully recovered more than $25 million for clients across 1,000+ cases. Attorney Chetan Patil earned his law degree from Case Western Reserve University School of Law. Attorneys Gabriela Dubrocq and Patricia Herrera earned their law degrees from University of Miami. The firm handles cases nationwide involving unauthorized trading, churning, unsuitable investments, breach of fiduciary duty, and failure to supervise.
Patil Law works on a contingency fee basis, meaning clients pay no attorney fees unless the firm successfully recovers money on their behalf. All consultations are free and confidential.
Contact Patil Law, P.C.
If you have suffered investment losses involving Earl Eugene Newsome or any other financial advisor, contact Patil Law, P.C. for a free, confidential consultation. Our experienced securities attorneys will review your case and explain your legal options.
Phone: 800-950-6553
Email: info@patillaw.com
Website: investmentlosslawyer.com
No obligation. No fees unless we recover money for you.
The information in this post is based on FINRA BrokerCheck records and public filings. Allegations described are pending or unproven and may be contested. All investors are entitled to fair treatment under securities laws. This is attorney advertising. Prior results do not guarantee a similar outcome. This communication is for informational purposes only and does not create an attorney-client relationship.
