Recent press reports that LPL Financial, already beleaguered with investigations by securities regulators from Illinois, Montana, Oregon, Pennsylvania and Massachusetts and an onslaught of investor suits seeking recovery of losses in non traded real estate investment trusts (REITs), faces a claim of $8.5 million for losses in a leasing investment and unsuitable trading.
The plaintiff in the action is reported to be an heiress to the Knott’s Berry Farm theme park and claims that her LPL broker Alberto Neira’s suggestion that she invest in Silver Oak Leasing is a fraud.
A review of Neira’s CRD on the FINRA BrokerCheck website reveals that he was permanently barred by FINRA from the industry in December 2012 for selling securities away from the firm. The report indicates he worked for LPL Financial from February 2002 until January 2011 when he was discharged for failing to disclose participation in an outside business activity and selling away in violation of firm policies.
LPL has grown very quickly since the 1989 merger of Linsco, a Boston firm, and Private Ledger of San Diego. The company was known as Linsco Private Ledger prior to going public in 2010.
They claim to have over 13,000 brokers and 6,500 offices. The operational model is much different that the conventional wire house. Offices tend to be small, sometimes just one or two brokers who are often located in rural America, creating issues related to compliance review and oversight.
The brokers are independent contractors paying their own staff and rent and get LPL business cards, email addresses and letterhead.
Although the brokers are independent contractors with regard to their relationship with LPL Financial, LPL nevertheless remains liable for their actions should an investors account be mishandled and incur unwarranted losses.
Rex Securities Law , located in Boca Raton, FL, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
561 391 1900