Articles Tagged with LPL Financial

The State of Indiana recently imposed a $450,000 civil penaltyagainst LPL Financial for failing to supervise the company’s financial advisors on a state-wide basis.  The fine was based on two material deficiencies in LPL’s supervisory system. First, due to an alleged software glitch, LPL supervisors were not monitoring or supervising an undisclosed number of emails. There is an obligation for LPL to supervise all incoming and outgoing correspondence with firm clients. This obligation is rooted in FINRA Rule 3110(b)(4), which provides:

The supervisory procedures required by this paragraph (b) shall include procedures for the review of incoming and outgoing written (including electronic) correspondence and internal communications relating to the member’s investment banking or securities business. The supervisory procedures must be appropriate for the member’s business, size, structure, and customers. The supervisory procedures must require the member’s review of:

(A) incoming and outgoing written (including electronic) correspondence to properly identify and handle in accordance with firm procedures, customer complaints, instructions, funds and securities, and communications that are of a subject matter that require review under FINRA rules and federal securities laws.

According to a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Leslie Koonce, a former broker with LPL Financial, violated securities laws. Allegedly, between January 2012 and March 2015, Koonce participated in several private securities transactions without providing prior written notice to his firm, LPL. He also completed firm compliance questionnaires in which he falsely denied participating in private securities transactions, and he later provided false responses to questions asked by FINRA. These are all against securities laws and internal firm rules. For this misconduct, he was permanently barred from the industry.

According to his FINRA BrokerCheck report online, Mr. Koonce was previously registered with Hornor, Townsend & Kent in Horsham, Pennsylvania from May 1984 until September 1998, Main Street Management Company in Boston, Massachusetts from December 1999 until May 2004, Associated Securities Corp in Menlo Park, California from May 2004 until September 2009, LPL in Menlo Park from September 2009 until December 2015, Cetera Advisor Networks in Menlo Park from December 2015 until December 2015 and EK Riley Investments in Menlo Park from December 2015 until November 2017. He is not currently registered as a broker within the industry.

The Financial Industry Regulatory Authority (FINRA) records indicate that Kenneth Savino, a former LPL broker, was suspended from the industry for 15 days and fined $5,000. He allegedly purchased shares of a security for $100,000 without providing prior notice to his member firm and inaccurately indicated on an annual compliance questionnaire that he had not participated in any private securities transactions. He was discharged from LPL in October 2015 for allegedly entering into a loan transaction with another company, receiving shares of the company in return, with no pre-approval by the firm. He also allegedly made private securities transactions that he did not have pre-approved by the firm and introduced a client to a potential outside investment opportunity that was not approved by the firm. These are all against securities laws and internal firm rules. Selling away refers to when a financial advisor solicits investments in promissory notes or companies that are not pre-approved by his member firm. He does this in order to not have to share the commissions he earns from the sale with his member firm. The firm can be held liable for losses in this case.

According to FINRA records, Mr. Savino was previously registered with Manequity Inc. from May 1983 until December 1988, Lincoln Financial Securities Corp in Windsor Locks, Connecticut from December 1988 until July 2010 and LPL Financial in West Hartford, Connecticut from July 2010 until November 2015. He is currently registered with FSC Securities in East Hartford, Connecticut, and has been since December 2015.

Stoltmann Law Offices is investigating Sonya Camarco, a former LPL broker. Recently, the Securities and Exchange Commission (SEC) obtained an emergency court order to freeze her assets in order to prevent her from further dissipating funds she stole from her clients. Allegedly, during a 13-year period, Camarco stole money from her clients’ accounts. She allegedly forged client signatures on checks made out to an entity called “C Investments,” and had the checks sent to a private post office box. She then deposited the checks into a bank account in the name of “Camarco Investments Inc.” an entity of which she was the sole registered agent and which she shares an address with her office. She also allegedly liquidated securities in her clients’ accounts to make unauthorized payments to her own accounts. She then claimed that the C Investments were an outside investment that she made on their behalf and said she had no affiliation with C Investments. This was untrue. The SEC alleges that Camarco used the stolen client funds to pay her personal credit card bills and mortgages.

Camarco was previously registered with Merrill Lynch in New York, New York from December 1993 until July 2000, Morgan Stanley in Purchase, New York from July 2000 until March 2004 and LPL in Colorado Springs, Colorado from February 2004 until August 2017. She is currently not registered within the industry. Please call us today if you suffered losses with Ms. Camarco. We may be able to help you recover those losses on a contingency fee basis.

AdobeStock_78306447-1-300x199On Friday, May 12, LPL Financial’s sustained a system-wide technology outage. A construction crew damaged underground cables that provide critical network connectivity for LPL. The back-up connection experienced an unrelated technical issue and was unable to provide support as planned. As a result, advisors and clients were unable to access LPL’s system. This means clients who wished to buy or sell securities were mostly unable to do so. if this resuled in client losses or missed opportunities for gains, LPL can be sued for this in the FINRA arbitration system. Please call us today for a free consultation at 312-332-4200

AdobeStock_77502568-1-300x199According to a recent press release, Thomas E. Andrews is being charged by the Securities and Exchange Commission (SEC) for allegedly defrauding 23 investors. From 2010 until 2015, Andrews allegedly convinced his investors to liquidate their investments and put their money in “the Jackson Trust” and “the Lincoln,” promising high returns on both. The SEC alleges that the companies and investments were fake, and that he used the money to pay for personal expenses. Andrews allegedly sold $8,384,253 from investors and paid an assistant $1 million of that. Andrews was an unregistered securities broker at the time of the fraud and this is against securities rules. In December, Andrews pleaded guilty to securities and mail fraud and was sentenced to 97 months in prison. He was also ordered to pay over $8 million in restitution by a Utah judge. The assistant, Scott Christensen, pleaded guilty to securities fraud and making a false statement to a federal agent and later was sentenced to 12 months and one day in prison and ordered to pay $1 million in restitution.
Mr. Andrews was previously registered with LPL Financial in Salt Lake City, Utah from September 2005 until October 2015. He has three customer disputes against him, which are pending and one criminal final disposition. He has been permanently barred from the industry, according to his online, public BrokerCheck report with the Financial Industry Regulatory Authority (FINRA). Please call our Chicago-based securities law offices today at 312-332-4200 to find out how you may be able to sue LPL for not reasonably supervising Mr. Hogan. The call to us is free.

According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Larry Allen Stapp allegedly borrowed $200,000 from a firm customer. This is against securities rules and regulations. For this, he was fined $10,000 and suspended for six months. If you invested money with Larry Allen Stapp, you may be able to recover those losses in the FINRA arbitration forum on a contingency fee basis. Please call our Chicago-based securities law firm today to speak to an attorney about your options. The call is free with no obligation. Stapp was registered with H.D. Vest Investment Securities in Irving, Texas from January 1989 until March 1996 and LPL Financial in Midland, Texas from March 1996 until March 2016. He is not currently registered with any member firm and is not licensed within the industry.

Did you lose money with Jodie L. Miller of Valic Financial Advisors and LPL Financial? If so, the attorneys at Stoltmann Law Offices are interested in speaking with you about those losses. Please call our law offices in Chicago at 312-332-4200 for a free consultation with one of our attorneys. There is no obligation. We may be able to help you bring a claim against Valic Financial and LPL Financial in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis. Please call today as there is a statute of limitations on many of these cases. Valic Financial and LPL Financial may be responsible for losses with Jodie L. Miller.

According to FINRA, Miller allegedly sold $764,000 worth of notes or “Letters of Protectino” issued by a company called Tri-Med Corporation. Allegedly, Miller earned over $38,000 in commissions for these sales. According to the complaint: “Tri-Med purchased from medical providers, at a discounted rate, outstanding receivables relating to personal injury claims, with the expectation that insurers would pay the entire receivable once the claim was resolved through litigation or settlement.” Miller allegedly did not have approval to sell Tri-Med investments from her brokerage firms, both Valic first, and then LPL Financial. FINRA also alleged that Miller had not reasonable basis to make recommendations of the investments, nor did she do her adequate due diligence. For this, she was ordered to pay a $15,000 fine and was suspended from the industry for 18 months. Tri-Med was accused of being a ponzi scheme, and the Florida Office of Financial Regulation brought a regulatory complaint against the company.

Miller was registered with NYLIfe Securities in Tampa, Florida from June 2004 until March 2008, Questar Capital Corp in St. Petersburg, Florida from March 2008 until November 2008, Valic Financial in Tampa, Florida from May 2009 until September 2012 and LPL Financial in Tampa from September 2012 until January 2013. She has one customer dispute against her and is not currently licensed within the industry, according to her online, public BrokerCheck report with FINRA.

Stoltmann Law Offices is investigating Joseph Likens, a former LPL Financial broker. Likens has been permanently barred by the Financial Industry Regulatory Authority (FINRA) from acting as a broker or otherwise associating with firms that sell securities to the public. Likens was accused of allegations that he violated firm policy regarding trading away and unreported holdings. This is sometimes referred to as “selling away,” and is when a broker solicits, purchases or sells a security not offered by his member firm. It is against securities rules and regulations. Please call our securities law offices today if you lost money because of Joseph Likens. We may be able to bring a legal claim against his former firm, LPL Financial, for not properly supervising him while he was registered there. Please call today.

Likens was registered with Edward Jones, Prudential Securities, Wachovia Securities, Morgan Stanley, Merrill Lynch and LPL Financial in Des Peres, Missouri from January 2015 until May 2015. He has one customer dispute against him and is not licensed. FINRA has permanently barred him from the industry.

Did you lose money with Paul Lebel, a former broker with LPL Financial? If so, the attorneys at Stoltmann Law Offices may be able to help you bring legal recourse against LPL for failing to supervise him while he was registered there, causing investment losses. Firms such as LPL may be responsible for financial losses and we bring legal action against firms such as LPL in the Financial Industry Regulatory Authority (FINRA) arbitration process on a contingency fee basis. This means, we don’t make money unless you recover yours. The call to us is free with no obligation, so please call today. 312-332-4200. Our law offices are based in Chicago.

According to a recent InvestmentNews article, Paul Lebel was barred from the industry on Tuesday by the Securities and Exchange Commission (SEC) for churning and excessively trading mutual funds in customer accounts and generating excess fees. He was accused of defrauding four customers in several of their accounts, according to an SEC administrative proceeding against him. It stated: “In particular, Lebel exercised de facto control over these customers’ accounts and excessively traded mutual fund shares which carry large front-end load fees.” These mutual fund shares were A shares, which are typically meant to be long-term, buy-and-hold investments. Mr. Lebel allegedly made $50,000 in commissions from the sale of them. A broker such as Mr. Lebel must take into account a customer’s net worth, investment objectives, investment sophistication and age, among other factors before recommending an investment to them. If he does not, his firm may be responsible for investment losses. Churning, or excessive trading is an especially egregious securities law violation, as it typically generates large fees for the broker and causes the client to pay unnecessary and, sometimes, high fees.

According to his online FINRA BrokerCheck report, Lebel was registered with Montano Securities Corp, Gruntal & Co., AG Edwards & Sons, Oppenheimer & Co., LPL Financial in Cambridge, Massachusetts from August 2008 until November 2014 and Wood (Arthur W.) Company. He has eight judgment/liens against him. He is not licensed within the industry at this time.

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