A former Texas advisor whose affiliation with LPL Financial ended in 2021 after she was accused of racism in a viral video must pay the firm more than $820,000 in damages and fees, plus interest, an arbitration panel ruled this week.
A video posted to TikTok on July 26, 2021, purported to show a screen shot of a Skype message written by Eileen Cure to an employee about interviewing candidates for an open position at her firm.
"i wanted to tell you i specifically said no blacks," the message read. "I'm not a prejudice person, but our clients are 90% white and i need to cater to them…so that interview was a complete waste of my time…so please don't second guess me or go against what i ask…listen to me and give me what i ask for please."
LPL ended its affiliation with Cure after investigating the allegations.
The court case was eventually shifted to Financial Industry Regulatory Authority arbitration, where a panel this week decided that Cure must pay the broker-dealer over $640,000 in attorneys' fees, $122,500 in compensatory damages, $45,300 related to promissory notes and $13,300 in FINRA fees. She is liable for interest on the damages and promissory notes.
LPL had claimed breach of promissory notes, alleging that Cure entered into two notes in 2018 and 2019 and that the balance became immediately due and payable when her relationship with the firm ended, according to the FINRA panel decision.
Cure's attorney didn't immediately respond to an email seeking comment Thursday, nor did LPL spokespeople respond to a similar email.
In a statement to ThinkAdvisor in 2021, Cure described the TikTok video as containing "an unauthenticated photo of an alleged internal office chat without validation or context of any content." She added that she had "taken steps to confirm that race never has and will not be a factor in hiring decisions" at her firm.
Cure was registered with Wealth Management of Kentucky Inc. as an investment adviser from August 2022 until January 2023, according to her Investment Adviser Public Disclosure profile. Between 2022 and 2024, the profile shows, she settled four customer complaints over unsuitable investments.
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