FINRA’s Department of Enforcement brought a complaint against Lyons for the following alleged misconduct. FINRA alleged that, between January 2011 and December 2013, Lyons recommended and executed fourteen sets of unsuitable mutual fund switches in three customer accounts. According to FINRA, Lyons recommended that his customers invest in Class A and Class T shares, which were only advantageous to the customers from a fee perspective if the funds were held on a long-term basis. However, the Class A and Class T mutual funds shares in the fourteen sets of transactions at issue were held by Lyons’ customers for periods of less than twelve months. As a result, all of the customers incurred additional commission charges for the switch transactions.
Based upon the foregoing misconduct, FINRA alleges Lyons violated NASD Conduct Rule 2310 and FINRA Rules 2111 and 2010. FINRA Rule 2111, for example, requires financial advisors to recommend suitable investments and investment strategies to their clients (known as the suitability rule) based upon the client’s unique financial situation, including investment objectives and risk tolerance.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment damages investing with Lyons through Cambridge, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation or complete our free case evaluator.