Jack Dougherty: LPL Fires Gladstone Wealth Advisor

Former Blue Bell, Pennsylvania financial advisor Jack Dougherty (CRD# 3018615) was recently terminated by his former employer in connection with alleged rule violations. Financial Industry Regulatory Authority records show that the former LPL Financial representative, who has also received a pending investor complaint, did business as Gladstone Wealth Partners.

Mr. Dougherty’s BrokerCheck report discloses his termination from LPL Financial. Filed in July 2023, the disclosure states that LPL fired him in connection with allegations he participated in an outside business activity and in private investments without the firm’s approval.

A recent article published in AdvisorHub reports that Mr. Dougherty was recently sued in connection with “allegations that he over-leveraged an investor’s account with a $5 million securities based loan and facilitated an outside investment.”  According to the report, an oil entrepreneur filed a lawsuit against Mr. Dougherty alleging that in 2013 the advisor “persuaded him to invest $300,000 in a Jamaica-based medical marijuana grower” in which Mr. Dougherty had invested as well and on whose board he served. In 2020, the lawsuit alleges, the entrepreneur discovered that his entire principal was gone. Mr. Dougherty was registered with Wells Fargo Advisors at the time he allegedly recommended the investment, allegedly representing that the loan would generate income such that the entrepreneur could pay living expenses and interest payments, when in Mr. Dougherty benefited by charging management fees and the entrepreneur was exposed to significant risk.

A second disclosure on Mr. Dougherty’s BrokerCheck report describes the complaint, which alleges that he recommended an unsuitable wealth management strategy that resulted in losses. The advisor wrote a statement denying the allegations. “The investments about which the customer complained were suitable and recommended based on the customer’s objectives, goals and financial circumstances,” the statement asserts. “The representative put the customer’s interest first, and will defend this matter to the fullest extent of the law.”

According to the Financial Industry Regulatory Authority, Jack Dougherty holds 23 years of securities industry experience. Most recently based in Blue Bell, Pennsylvania, he was registered as a broker with LPL Financial from 2021 until 2023. His past registrations include Wells Fargo (Collegeville, Pennsylvania; 2013-2021), Merrill Lynch (Philadelphia, Pennsylvania; 2010-2013), New England Securities (Newtown Square, Pennsylvania; 2008-2010), LPL Financial (Bryn Mawr, Pennsylvania; 2008), Wachovia Securities (St. Louis, Missouri; 2003-2005), and Morgan Stanley DW (Purchase, New York; 1998-2003). His credentials include the passage of five securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Futures Managed Funds Examination, or Series 31; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Investment Adviser Law Examination, or Series 65. He is not currently licensed as a broker or as an investment advisor. (Information current as of August 23, 2023.)

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