LPL Financial

LP Customer Compliants

November 16, 2017 | Silver Law Group

The New Jersey Bureau of Securities has levied a large fine against LPL Financial LLC, one of the largest independent broker-dealer in the United States. The $950,000 fine also requires LPL to donate $25,000 to the New Jersey state investor education fund. The Bureau of Securities imposed these judgments against LPL for allegedly conducting unsuitable sales of non-traded real estate investment trusts and business development companies.

The Bureau on its settlement with LPL states; “This substantial settlement with LPL Financial sends a message that the securities industry cannot sell unsuitable investments to clients who are unlikely to be able to bear the financial risks,” said Attorney General Christopher S. Porrino. “The standards governing sales of alternative investments are in place to protect investors, and the Bureau will take action when these standards are ignored.”

Generally, Federal statues regulate suitability standards and limit the sale of certain alternative investments based on a complex calculation that reflects a client’s liquid net worth, or a mixture of a client’s income and net worth and other factors. New Jersey also limits the maximum total ratio of alternative investments held by an individual client’s portfolio to not exceed 10 percent of an investor’s complete portfolio.

LPL Financial, LLC (Linsco Private Ledger)

October 31, 2017 | Silver Law Group

Background Information

In terms of gross revenues and number of financial advisors, LPL Financial is ranked as the biggest independent broker dealer in the financial services industry. The company has financial advisors all over the U.S., mostly in small branch offices. And because there are so many small branch offices, LPL has several supervisory challenges.

LPL Financial was formed in 1989 as the result of a merger of two small brokerage firms: Linsco and Private Ledger. The original name was Linsco/Private Ledger, and that became LPL Financial, LLC in January of 2008.

Former South Florida-based Raymond James Broker Leon P. Rehak Under Investigation

October 10, 2017 | Silver Law Group

Silver Law Group is investigating former South Florida-based Raymond James & Associates, Inc. (CRD# 705) broker Leon P. Rehak (CRD# 2331058) after a customer brought a FINRA arbitration complaint alleging over half a million dollars in damages.

According to Rehak’s FINRA BrokerCheck report, a customer of Rehak filed a FINRA arbitration against him in November 2016 – a few weeks after he left Raymond James.

According to Rehak’s BrokerCheck report, Rehak, who is currently employed by LPL Financial LLC (CRD# 6413) at its Pompano Beach, Florida location, allegedly committed numerous types of securities misconduct between 2004 and 2011 in a customer’s accounts.

Federal Employee Benefit Counselors Targeted Federal Government Employee Retirement Plan Participants With Variable Annuities Scheme.

August 2, 2017 | Silver Law Group

Silver Law Group and The Law Firm of David Chase are reviewing potential claims of fraudulent inducement of federal employees into purchasing high fee paying variable annuity products by LPL Financial LLC (CRD#6413) affiliated brokers Brandon Long (CRD# 5975459) , Christopher S Laws (CRD#4479529) , Johnathan Dax Cooke (CRD#5365691) and Danny Scott Hood (CRD#3236852).

Variable annuities (“VAs”) are highly-complex financial products. According to FINRA, a good way to think of a VA is as a cross between an insurance product and an investment product.

Like other annuities, a VA is a contract between the investor and an insurance company. The investor pays the insurer a single payment or a series of payments called premiums. In exchange for those premiums, the insurer promises to make periodic payments to you either immediately or at some point in the future.

West Palm Beach, Florida Broker William T. Eaton Under Investigation After FINRA Suspends Him

June 6, 2017 | Silver Law Group

Silver Law Group is investigating former Florida-based LPL Financial LLC (CRD# 6413) and Wells Fargo Advisors, LLC (CRD# 19616) (Also known as Wells Fargo Clearing Services) broker William T. Eaton (CRD# 3058469) after FINRA suspended him.

According to Eaton’s FINRA BrokerCheck report, FINRA suspended Eaton from acting as a broker in September 2016. Eaton allegedly failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

LPL Financial employed Eaton from August 2015 to November 2016 at its West Palm Beach, Florida location. Wells Fargo Advisors employed Eaton from April 2013 to August 2015 at its Wellington, Florida location. Prior to Wells Fargo and LPL Financial, Suntrust Investment Services, Inc. (CRD# 17499) employed Eaton from July 2011 to April 2013 at its Delray Beach, Florida branch.

Robert N. Tricarico, Formerly of LPL Financial, Under Investigation After He Pled Guilty Misappropriating $1.2 Million from an Elderly Client

June 6, 2017 | Silver Law Group

Silver Law Group is investigating former LPL Financial LLC (CRD# 6413) broker Robert N. Tricarico (CRD# 1500863) after he pled guilty to one count of wire fraud against an elderly investor in a federal court in Connecticut.

According to Tricarico’s FINRA BrokerCheck, Tricarico pled guilty in June 2016 in a Hartford, Connecticut federal court to one count of wire fraud related to his misappropriation of more than $1.2 million from an elderly client.

According to court documents and statements made in court, from January 2010 to June 2013, Tricarico served as the financial advisor for an elderly investor who had significant assets. Tricarico misappropriated more than $1.1 million from the senior by writing numerous checks to himself or for his benefit without the victim’s authorization. Additionally, Tricarico liquidated the senior’s coin collection and cashed checks for himself that were made payable to the senior.

Marcos Yanez, former LPL Financial Broker Under Investigation Over Variable Annuities Misrepresentation Allegations

April 26, 2017 | Silver Law Group

Silver Law Group is investigating former Dallas, Texas-based LPL Financial LLC (CRD# 6413) broker Marcos Yanez (CRD# 5353857) over allegations that Yanez misrepresented certain aspects in the sale of a variable life insurance policy amidst other allegations.

According to Yanez’s FINRA BrokerCheck report, a customer filed a complaint against Yanez in March 2017. The FINRA arbitration complaint alleges misrepresentations in the sale of a variable life insurance policy, and that Yanez advised the customer to take out a margin loan in order to loan money to the advisor.

LPL Financial employed Yanez from December 2011 to March 2016 at its Dallas, Texas branch. According to Yanez’s detailed CRD report, Yanez operated under the moniker Staib Wealth Management from February 2014 until the name changed to Silver Sail Wealth Advisors in February 2015. Yanez is no longer registered with FINRA.

Colorado Cetera Advisors Broker Ken A. Balser Permanently Barred by FINRA

April 7, 2017 | Silver Law Group

Silver Law Group is investigating Colorado-based Cetera Advisors LLC (CRD# 10299) broker Ken A. Balser (CRD# 704053) after FINRA permanently barred him.

According to Balser’s FINRA BrokerCheck report, FINRA permanently barred Balser from acting as a broker or otherwise associating with firms that sell securities to the public. The permanent bar follows Cetera Advisor’s discharge of Balser in July 2016 due to allegedly engaging in private securities transactions in violation of Cetera Advisors policy.

Balser, according to the FINRA BrokerCheck report, consented to sanctions and the entry of findings that he refused to appear for testimony and provide documents and information requested by FINRA for an investigation into the allegations that Balser had engaged in private securities transactions with Cetera Advisors.

Sherman L. Greer, Formerly North Carolina LPL Financial Branch, Under Investigation

April 7, 2017 | Silver Law Group

Silver Law Group is investigating former Locust, North Carolina-based LPL Financial LLC (CRD# 6413) broker Sherman L. Greer(CRD# 4910464) after FINRA permanently barred him.

According to Greer’s FINRA BrokerCheck report, FINRA permanently barred Greer in November 2016 from acting as a broker or otherwise associating with firms that sell securities to the public after Greer failed to respond to FINRA’s request for information.

Prior to FINRA’s bar, LPL Financial discharged Greer in May 2016 after he failed to respond to inquiries from LPL Financial’s compliance department.

Former LPL Financial Broker Michael Babyak Jr Under Investigation After FINRA Permanent Bar

March 14, 2017 | Silver Law Group

Silver Law Group is investigating former LPL Financial LLC (CRD# 6413) broker Michael Babyak Jr, II after FINRA permanently barred him.

According to Babyak’s FINRA BrokerCheck report, FINRA permanently barred Babyak from acting as a broker or otherwise associating with firms that sell securities to the public in October 2016.

Without admitting or denying the findings, FINRA found that Babyak had customers invest a total of $4.25 million into a limited liability company that he set up. Babyak, who had complete control over the LLC, then loaned the $4.25 million to a third party for the benefit of his customers. Further, Babyak arranged for the repaid funds to be loaned to two additional borrowers. Babyak failed to notify his employing firm he was participating in these additional transactions.