David Stuart: Why Did FINRA Suspend Ex-Lincoln Advisor?

Former Cherry Hill, New Jersey financial advisor David Stuart (CRD# 857819) was recently sanctioned and suspended in connection with allegations of improper commission-sharing. Financial Industry Regulatory Authority records show that he was most recently registered as a broker with Lincoln Financial Advisors Corporation.

Mr. Stuart’s BrokerCheck report discloses the recent FINRA sanction against him. Filed in November 2023, it alleged that as a representative of Lincoln Financial Advisors, he shared commissions with an unregistered individual “who referred customers to [him] for the purpose of opening brokerage accounts and effecting securities transactions.” He paid the individual commissions of about $148,265 from transactions in the accounts of customers that they referred, according to FINRA, which found that the individual in question had been previously barred from associating with any FINRA member firm, and that Mr. Stuart knew he was unregistered.

Despite his awareness of the individual’s status, FINRA found, Mr. Stuart nonetheless stated on firm compliance questionnaires “that he understood that he was prohibited from directly paying securities or investment advisory compensation to unregistered individuals.” He also allegedly made false attestations that he was not making referral payments to individuals outside of his firm. In connection with these findings, FINRA issued him a fine of $7,500 and a three-month suspension from registering with any member firm in any capacity.

As a second disclosure on Mr. Stuart’s BrokerCheck report reflects, the allegations of commission-sharing also led to his resignation from Lincoln Financial Advisors in May 2023. He “voluntarily reported the activity to his office manager and no customer harm has been identified,” the disclosure states.

According to the Financial Industry Regulatory Authority, David Stuart holds 44 years of securities industry experience. He was most recently registered as a broker with Lincoln Financial Advisors Corporation in Cherry Hill, New Jersey from 1998 until 2023. His registration history includes The Lincoln National Life Insurance Company (Fort Wayne, Indiana; 2003-2006) and Cigna Financial Advisors (Radnor, Pennsylvania; 1978-1998). His credentials include the passage of four securities industry qualifying exams: the Registered Representative Examination, or Series 1; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; and the Uniform Securities Agent State Law Examination, or Series 63. He is currently under suspension from acting as a broker. (Information current as of January 18, 2024.)

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