Investor sues financial advisor after losing money

SHERMAN-A Texas resident has filed a lawsuit against his financial advisor after losing more than $200,000 in a rollover transfer of his retirement account.

Otis Manuel filed suit against LPL Financial Corp. and Phillip Eggers on Aug. 6 in the Sherman Division of the Eastern District of Texas.

Manuel states that the defendants recommended a 72(t) plan for his entire 401k retirement account and the rollover transfer was accomplished in May 2001. Manuel states that due to the transfer he lost nearly all of his retirement funds, approximately $205,000, plus a reasonable amount of return.

Within the lawsuit, Manuel states the 72(t) program was grossly inappropriate and "should not have been recommended much less implemented" by a "competent investment professional."

More than seven years later, the plaintiff requested the defendants reimburse his lost funds but the defendants responded that the advisor's recommendations were "provided in good faith" and there was no basis for a loss reimbursement.

According to the court records, the Financial Industry Regulatory Authority broker check report shows Eggers has a history of "inappropriate conduct."

The defendants are accused of negligence and of violating Securities Exchange Act, Texas Securities Act and the Texas Deceptive Trade Practices Act.

The plaintiff is seeking an award of actual damages and damages for mental anguish, punitive damages, attorney's fees, court costs and interest.

Manuel is represented by Sherman attorney Ronald R. Huff. Jury trial is requested.

U.S. District Judge Michael H. Schneider is assigned to the case.

Case No. 4:10cv00397