SEC Fines Ex-LPL Dealer Who Earned $1.5M From Undisclosed Actual Property Offers

The Securities and Alternate Fee censured and fined a former dealer $125,000 for failing to reveal his conflicts of curiosity tied to personal actual property securities choices that generated practically $1.5 million in compensation.

Between August 2020 and January 2023, former LPL Monetary dealer Derek L. Copeland suggested purchasers to take a position greater than $50 million throughout 25 separate choices, in response to an SEC order issued Monday. He additionally advisable that not less than 34 advisory purchasers open securities-backed strains of credit score to leverage their portfolios and make investments greater than $15.5 million in 12 of the personal choices.

The Monetary Trade Regulatory Authority barred Copeland in March 2025 over associated allegations. Finra discovered that he advisable 19 personal securities choices tied to a flooring firm, an upscale furnishings retailer, a cell residence park and an actual property improvement undertaking.

Copeland, who labored at LPL-affiliated advisory agency Impartial Advisor Alliance, marketed the personal choices to advisory purchasers however did not disclose that he acquired direct and oblique compensation from the businesses sponsoring them, in response to the SEC.

Copeland, who led a apply referred to as SilverRock, settled with the SEC with out admitting or denying its findings. LPL and Impartial Advisor Alliance terminated him in January 2023 after alleging that he held positions with exterior companies with out notifying the companies, in response to BrokerCheck.

Copeland’s public document exhibits a $1.5 million grievance from February 2023 for unsuitable suggestions. The grievance was settled for $175,000, and Copeland didn’t contribute to the fee, in response to BrokerCheck. 

Copeland began in 2001 as a dealer at UBS, moved in 2007 to Morgan Stanley, switched in 2017 to Spire Securities, which he left in 2020 for LPL and IAA, in response to his BrokerCheck document. His crew managed $150 million in belongings in 2020, in response to an announcement of their transfer to LPL. 

His LinkedIn profile lists him as a principal at MCM Companions, an organization concerned in actual property improvement and financing. He didn’t reply to a request for remark despatched by the social networking web site.

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