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Misconduct-Riddled Former Ohio-based Broker Under Investigation Amidst Pending FINRA Arbitrations

Failure to Comply with FINRA Request Terminates Broker Lance Shaw’s Securities Industry Career on silverlaw.comSilver Law Group is investigating former Ohio-based Concorde Investment Services, LLC (CRD# 151604) broker Larry S. Werbel (CRD# 828351) for three pending FINRA arbitrations and a litany of disclosures on his FINRA BrokerCheck report.

According to Werbel’s FINRA BrokerCheck report, Werbel has three pending FINRA arbitrations filed in the last four months that allege unsuitable recommendations, failure to supervise, fraud, breach of duty of loyalty, and negligence for an aggregate amount of over $1.25 million.  At least one of the complaints alleges securities violations spanning back to Werbel’s employment with LPL Financial LLC (CRD# 6413) from February 2009 to February 2011.

FINRA’s BrokerCheck tool is a valuable way to examine a broker’s background.  The investor tool discloses FINRA arbitrations that have been settled, are pending or have been denied; bankruptcies, civil judgments and tax liens; employment separations and other discharges; criminal proceedings; and regulatory actions.  According to an InvestmentNews report, only about 12 percent of financial advisors have any type of disclosure events on their records.

Werbel has 14 disclosures on his FINRA BrokerCheck report.  That is a high amount of disclosures by any measure but especially high in light of the InvestmentNews report.

Those 14 disclosures are a mix of different FINRA arbitrations, regulatory actions and employment separations.  Werbel even has a pending criminal charge that came in January 2016.

Werbel’s misconduct beings in February 2011 after he was discharged from LPL for privately buying Q Lotus Holdings Inc. (QLTS) stock for his clients without his firm’s permission; an illicit practice called “selling away.” Less than a month later, FINRA sanctioned Werbel for those same allegations, fining him $12,500 and suspending him for two months.

In July of 2014, a complaint alleging trading in the infamous VGTel was settled for $185,000.  Shortly after that settlement, in November 2014, Summit Brokerage Services Inc. (CRD# 34643) permitted Werbel to resign after a customer initiated a FINRA arbitration.  Another VGTel-related FINRA arbitration arose in November 2015 alleging $661,800 in damages.

Two months later, criminal charges were filed against Werbel alleging wire fraud, investment advisor fraud, and securities fraud among other things.  The criminal indictment prompted an internal review by Concorde and the firm subsequently discharged Werbel due to the criminal indictment.

Werbel clearly has a colorful BrokerCheck report.  While many of the allegations are pending, including the criminal proceedings, there is often fire where there is smoke.  There is a lot of smoke with Werbel.

Concorde Investment Services employed Werbel from April 2015 to January 2016 at its Chagrin Falls, Ohio branch.  Summit Brokerage Services, which is part of Cetera Financial Group’s family of brokerage firms, employed him from June 2012 to November 2014 also at its Chagrin Falls, Ohio branch.

If you have invested with Larry S. Werbel and Concorde Investment Services, LLC, LPL Financial LLC, or Summit Brokerage Services Inc.  and have lost money doing so, you may be able to recover some or all of your losses.  Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.

Silver Law Group represents the interests of investors who have been the victims of investment fraud.  If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.

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