James Gahagan: LPL Advisor Faced $206K Complaint

A recent, closed investor complaint against Santa Cruz, California financial advisor James Gahagan (CRD# 2771502) alleged that an investment recommendation was unsuitable. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with LPL Financial, doing business as JP Gahagan Financial Services.

Mr. Gahagan’s BrokerCheck report discloses one investor complaint. Filed in April 2025, it alleged  that a fixed annuity investment recommendation was unsuitable for the customer. The complaint alleged damages of $206,027.31 and was closed by Pruco Securities with no action taken. “This matter is being reported consistent with FINRA rules pertaining to the reporting of certain written customer complaints,” it states further. “The company by this filing makes no allegations regarding the actions of the representative.”

FINRA rules require brokers like Mr. Gahagan to recommend only investments and strategies that conform to a standard referred to as suitability. As stipulated by FINRA Rule 2111, this standard holds that brokers must “have a reasonable basis to believe that a recommended transaction or investment strategy” is appropriate for a client’s profile, which includes their age, investment background, net worth, risk tolerance, and other concerns. An investment that lacks principal protection, for example, could be considered unsuitable for conservative investors who have a low risk tolerance. Brokers who recommend their customers invest in unsuitable products or strategies may be held liable in the event of losses.

According to the Financial Industry Regulatory Authority, James Gahagan holds 28 years of securities industry experience. Based in Santa Cruz, California, he has been registered as a broker and an investment advisor with LPL Financial since 2017, doing business as JP Gahagan Financial Services. His past registrations include Prudential Financial Planning Services and Pruco Securities. His credentials include the passage of five securities industry qualifying exams: the Uniform Investment Adviser Law Examination, or Series 65; the Uniform Securities Agent State Law Examination, or Series 63; the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7; the Investment Company Products/Variable Contracts Representative Examination, or Series 6. He is licensed in California, Nevada, Oregon, South Carolina, and Washington. (Information current as of August 10, 2025.)

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