Last Updated: August 2025 | Bellevue, WA
William D. Carlton Investigation Summary
Here’s what you need to know about Bellevue, WA, former stockbroker William D. Carlton:
- Name: Mr. William David Carlton
- Current Status: Not currently registered with FINRA
- Prior Employers:
- Cetera Advisors LLC (Bellevue, WA) (09/2022 – 01/2024)
- First Allied Securities, Inc. (Kirkland, WA) (12/2008 – 09/2022)
- First Montauk Securities Corp. (Issaquah, WA) (04/1998 – 12/2008)
- Prudential Securities Incorporated (New York, NY) (05/1994 – 04/1998)
- Smith Barney Shearson Inc. (New York, NY) (07/1993 – 05/1994)
- Lehman Brothers Inc. (New York, NY) (11/1985 – 07/1993)
- Foster & Marshall Inc. (11/1983 – 11/1985)
- Function: Stockbroker / Financial Advisor
- Aliases: William Carlton
- Primary Location: Bellevue, WA
- CRD #: 1215541
- Alias: Bill Carlton
- DBA: Carlton Wealth Management
- Can William Carlton be sued in FINRA arbitration? Yes
- Sanctioned by Securities Regulator? Under SEC investigation
- Discharged by a Prior Employer: Yes
- Three Pending Customer Disputes Seeks Damages of Unspecified Amount
If you’ve sustained damages from Mr. Carlton, discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With William Carlton As Your Stockbroker?
The United States Securities and Exchange Commission (SEC) has filed a civil complaint against William Carlton in the United States District Court for the Western District of Washington for fraudulent trade allocations, also known as cherry-picking.
Between January 2015 and August 2022, Carlton allegedly engaged in a scheme where he placed trades in his personal trading accounts and waited to observe the price movements before allocating profitable trades to himself and losing trades to his clients’ accounts, according to SEC pleadings.
- Filing Date: September 27, 2024
- SEC Enforcement Actions Seek:
- Civil and administrative penalties
- Disgorgement of ill-gotten gains
- Monetary penalties other than fines
- Permanent injunction against future securities violations
Three customers of Cetera have filed FINRA arbitrations alleging that Carlton mishandled their accounts. Damages are not yet specified in these currently pending cases.
Employment Termination After Allegations – Carlton was discharged from Cetera Advisors LLC on December 21, 2023, due to inappropriate trading practices.
Allegations of Broker Misconduct Against William Carlton
Customers and regulators have alleged the following misconduct by William Carlton:
- Cherry-Picking Trade Allocation Fraud – The SEC alleges that Carlton used discretionary trading authority to allocate profitable trades to himself while assigning losing trades to his clients, violating SEC Rule 10b-5 and Sections 206(1) and 206(2) of the Investment Advisers Act.
- Breach of Fiduciary Duty – By engaging in fraudulent trade allocation, Carlton prioritized his personal gain over client interests, violating FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade).
- Pending FINRA Arbitration for Customer Dispute – A customer complaint filed with FINRA arbitration on January 6, 2025, alleges unsuitability, fraud, breach of contract, and breach of fiduciary duty related to real estate securities.
- High Margin Balances
- Day Trading
- Misrepresentation
- Unsuitable Trading Strategy
These violations fall under SEC Rule 10b-5, FINRA Rule 2010, and FINRA Rule 2111 (Suitability Rule), which prohibit fraudulent, deceptive, or manipulative practices in securities trading.
What is Excessive Trading (Churning)?
Investigations Involving Misuse of Margin Borrowing
Recover Your Investment Losses Now With Rex Securities Law
Investigation of Cetera Financial Brokers-Lawsuits, Arbitrations & Disputes
If you have suffered investment losses in an account handled by William Carlton, contact us for a complimentary consultation with an experienced securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL, and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors, and broker-dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis, meaning that you do not pay legal fees unless we are successful.