LPL’s Robert Li Involved in Second Investor Complaint

Robert Li (CRD # 4068255[1]) is the subject of a second customer complaint concerning the use of margin, according to records accessed from the Financial Industry Regulatory Authority, or FINRA.  Mr. Li is currently associated with LPL Financial in Naperville, Illinois.  He is also affiliated with a company called RL Wealth Management Group.  This article is based on public disclosures contained on Robert Li’s BrokerCheck report, last accessed on February 15, 2023.

Two Customer Complaints Involving Margin Trading

According to disclosures from FINRA, Robert Li is currently involved in two pending customer disputes.  The customers are seeking $200,000 and $75,000 and both cases are currently pending.  Here is the disclosure accompanying one of the cases, which was filed on January 6, 2023, “[c]ustomer alleges that representative recommended an investment strategy involving REITs, and buying certain equities on margin which were not suitable for the customer’s investment objectives and risk tolerance. Time period: December 2008 to January 2023.” 

Robert Li Affiliated with LPL Financial in Naperville, Illinois

Mr. Li has been associated with LPL Financial in Naperville, Illinois since July 2003.  He is also associated with a company called RL Wealth Management Group.  LPL Financial is liable for all investment recommendations made by Robert Li and must supervise his conduct as a securities salesperson.

Important Information about Margin Trading

Margin trading involves borrowing funds from a broker or exchange to buy securities, and as with any type of trading, it involves certain risks. Here are some of the risks associated with margin trading:

1. Margin calls: A margin call[2] occurs when the value of the securities purchased with borrowed funds falls below a certain level, and the broker requires the investor to deposit additional funds to cover the margin shortfall. If the investor is unable to meet the margin call, the broker can sell the securities to cover the shortfall, resulting in a loss for the investor.
2. Amplified losses: Margin trading can amplify both gains and losses, as the investor is using borrowed funds to make trades. If the market moves against the investor’s position, the losses can be greater than the original investment.
3. Higher transaction costs: Margin trading often involves higher transaction costs, including interest on the borrowed funds, commissions, and fees. These costs can erode profits and increase losses.
4. Limited control: Margin trading can limit an investor’s control over their investments. If the broker issues a margin call, the investor may be forced to sell securities to cover the shortfall, even if they believe the securities will increase in value in the future.
5. Limited market exposure: Margin trading can limit an investor’s exposure to a particular market or asset class, as the investor is limited by the amount of margin they can secure from their broker.

Did You Lose Money Investing with Robert Li?

If so, please contact our law office for a free and confidential consultation.  Ask to speak with attorneys Marc Fitapelli or Jeffrey Saxon.  You can complete the form below or call 800-767-8040.