Did you lose money investing with Cetera Advisors LLC broker William Carlton (CRD# 1215541)? He was registered with Cetera Advisors LLC in Bellevue, Washington, from 2022 to 2024, when he was terminated regarding, “Inappropriate Trading Practices.” He was registered with First Allied Securities, Inc. in Kirkland, Washington, from 2008 to 2022.
In September 2022, the Securities and Exchange Commission (SEC) initiated an investigation alleging trading practices.
In September 2024, the SEC alleged that the broker “engaged in a long-running and fraudulent trade allocation scheme-commonly referred to as “cherry picking”-in which he benefitted himself to the detriment of his investment advisory clients.” According to his CRD, his “scheme involved placing stock trades in his personal trading accounts and observing the daily price movements of the stocks. If the price of the stock increased during the day, Carlton often sold the shares, locking in short-term profits for himself. If the price of the stock decreased during the day, Carlton often moved some or all of the shares to his clients’ accounts, thereby avoiding short-term losses. In short, by waiting and watching the price movements of the stocks he purchased in his personal accounts before deciding whether to keep the trades for himself or allocate the trades to his clients, he was able to “cherry pick” trades that were immediately profitable for himself, to the detriment of his clients to whom he owed a fiduciary duty.” The investigation alleged that between January 2015 and August 2022, he generated millions of dollars in ill-gotten gains through his scheme.
William Carlton Customer Complaints
He has been the subject of three customer complaints in 2025, according to his CRD report:
March 2025. “Claimants allege they incurred high margin balances and account losses as a result of their investment advisor’s day-trading strategy. Claimants also allege misrepresentation, negligence, breach of contract, and breach of fiduciary duty.” The case is currently pending. The complaint was regarding real estate security losses, and it took place while he was registered with Cetera Advisors LLC.
March 2025. “Claimants allege they were harmed by their investment advisor’s unsuitable trading strategy. Claimants generally allege breach of contract, negligent supervision, and breach of fiduciary duty.” The case is currently pending. The complaint was regarding real estate security losses, and it took place while he was registered with Cetera Advisors LLC.
January 2025. “Claimant generally alleges unsuitability, fraud, breach of contract, and breach of fiduciary duty.” The case is currently pending. The complaint was regarding real estate security losses, and it took place while he was registered with Cetera Advisors LLC.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Cetera Advisors LLC may be liable for investment or other losses suffered by William Carlton’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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