LPL Financial’s Regulatory Woes Continue

LPL Financial’s Regulatory Woes Continue 150 150 Rex Securities Law

LPL Financial has grown extremely quickly and is now the fourth largest brokerage firm, behind Wells Fargo, Morgan Stanley and Merrill Lynch. They have over 13,000 brokers in 6,500 offices and over 4 million customers. LPL was created in 1989 through a merger of Linsco, an older firm from Boston, and Private Ledger, another older firm, from San Diego.

Their rapid growth has not without numerous issues with securities regulators nationwide.

Most recently, on May 21, 2013, FINRA assessed a record $9 million dollar fine against LPL for serious deficiencies in their email system that prevented the proper supervision of brokers and made it impossible to respond to regulator’s requests for information. See this for more information.

A review of LPL’s disclosure information on the FINRA BrokerCheck website reveals 42 regulatory events, including these recent problems:

  • FINRA-12/31/2012- $400,000 fine for failure of written supervisory procedures to ensure delivery of prospectuses to customers.
  • Montana Commissioner of Securities-11/04/2012-Fine and restitution for failure to provide disclosure documents to customers
  • Massachusetts Securities Regulators-2/6/2013- $2.5 million fine and restitution for failure to supervise and train agents in connection with the sale of non traded REITs.
  • Illinois Regulators-10/24/2011- Fine and restitution in excess of $2 million for failing to supervise a registered representative.
  • Pennsylvania Regulators-12/6/2011- Fine of $400,000 for failing to supervise two registered representatives.
  • Oregon Regulators-11/8/2011- Fine of $100,000 for failing to supervise an agent that sold general partnership units to senior citizen base.

To review their entire disclosure report, visit the FINRA BrokerCheck Website.

Rex Securities Law currently represents a number of former LPL customers who are seeking damages for losses incurred as a result of purchasing non publicly traded real estate investment trusts (REITs). These REITs include KBS, Inland, CNL, Behringer Harvard, Hines, Wells, Dividend Capital and others.

If you have questions about your legal rights and the recovery of investment losses, do not hesitate to contact us.

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.

Rex Securities Law

561 391 1900

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