The Frankowski Firm has filed a Financial Industry Regulatory Authority (“FINRA”) arbitration claim on behalf of investors who claim they were the victims of fraud and neglect at the hands of Sevierville, Tennessee stockbroker Steven Charles Champagne, who now works for LPL Financial but was employed at Morgan Stanley during the events at issue.
According to the allegations, Mr. Champagne convinced the claimants to make a $300,000 investment in a company called Liquidifast, making small business loans to businesses in the Pigeon Forge area. Mr. Champagne allegedly promised the claimants returns of twelve to sixteen percent, however the claimants only received one interest payment before losing their entire $300,000 investment.
The claimants also allege that Mr. Champagne stopped communicating with them in July 2017.
FINRA Rule 3280 prohibits stockbrokers from participating in a private securities transaction without providing written notice to their firm detailing the proposed transaction(s) and the broker’s role and whether he or she may receive any compensation in connection with the transaction(s). Engaging in unauthorized private securities transactions, also known as “selling away,” is a violation of regulatory rules and brokerage firms’ internal policies and procedures.
Mr. Champagne’s FINRA BrokerCheck report reveals three other customer complaints against him and nine total disclosures. If you or someone you know has lost money as the result of a misrepresented or unsuitable investment as a customer Steven Charles Champagne, LPL Financial, or Morgan Stanley, please call the Frankowski Firm at 888.741.7503 or fill out this contact form.