Broker Fraud Loss Attorneys

Did You Suffer Investment Losses While Working With Former LPL Broker Derek Copeland? Our Broker Fraud Loss Attorneys Are Looking Into Allegations of Selling Way Involving $11M in Outside Investments

Shepherd Smith Edwards and Kantas Broker Fraud Loss Attorneys (investorlawyers.com) are looking into claims of investor losses involving barred LPL Financial stockbroker Derek Lee Copeland. According to the Financial Industry Regulatory Authority (FINRA), the former North Carolina financial advisor allegedly raised almost $11M through 74 transactions involving 19 securities without the knowledge of LPL.

This is an illegal practice known as selling away. He purportedly used unapproved channels when communicating with clients. The self-regulatory organization (SRO) barred Copeland in March 2025.

Derek Copeland’s CRD notes that LPL Financial fired him in 2023 for failing to disclose outside business activities to the broker-dealer. He was registered with the firm from 2020 to 2023. Previous to that he was a Spire Securities broker from 2017 to 2020.

He worked at Morgan Stanley and UBS Financial before that and has more than 20 years of experience in the brokerage industry. He was also an Independent Advisor Alliance investment adviser.

The private investments that Derek Copeland is accused of selling reportedly involved real estate. LPL did not know about these transactions and, therefore, never properly vetted whether these were properly structured or safe investments.

However, as the broker-dealer of record during the period of Copeland’s alleged selling away, it had a duty to properly supervise its then-registered representative and his activities in customers’ accounts.

What Is Selling Away?

Selling away involves marketing and selling investments to customers that were not offered or approved by the broker-dealer. While a broker can sell away in certain instances, they have to notify the firm and get their approval beforehand. Selling away is a serious problem because it can lead to investors being exposed to too risky, fraudulent investments.

Financial advisors are supposed to employ only approved channels when communicating with clients. To do so otherwise may be a sign that a stockbroker is trying to engage in business away from the supervision of their broker-dealer of record.

Copeland’s CRD shows at least one customer dispute that has resulted in a settlement. The customer, who alleged unsuitable recommendations, agreed to $175K.

Why You Need To Work With Trusted Broker Fraud Loss Attorneys

Selling away—unless authorized—is a kind of broker misconduct that exposes customers to investments that bypassed proper oversight and may be unregulated and registered. There are brokers who will sell away so they can earn higher commissions or commit financial advisor fraud.

Stockbrokers that engage in selling away may be subject to disciplinary actions and penalties if caught. However, this is not a guarantee that investors who were harmed will get their money back. Your best bet is to file your own claim seeking damages.

Shepherd Smith Edwards and Kantas Broker Fraud Loss Attorneys represent investors against broker-dealers and their registered representatives over selling away claims. Even if the brokerage firm had no idea that its broker was committing fraud, their failure to supervise can warrant grounds for an investment loss recovery claim.

Our seasoned selling away lawyers know how to identify when this has occurred and whether you should file your own lawsuit. More than 90% of our clients have received full or partial financial recovery through our hard work and skilled efforts.

What Should You Do If You Suffered Selling Away Losses?

Call our Broker Fraud Loss Attorneys at (800) 259-9010 or fill out this form.