May 2017 – Beaumont, Texas
Two elderly former customers of LPL Financial have filed a class action lawsuit against LPL Financial and their former broker Jason N. Anderson seeking damages current and former clients of Anderson. The suit alleges unauthorized trading, churning and mismanagement of customer accounts from 4/2007-1/2016.
Investor suits for damages are generally required to be pursued in arbitration before the Financial Industry Regulatory Authority (FINRA) in accordance with the new account agreement customers sign when opening an account. LPL Financial has challenged the suit that was filed in Jefferson County, TX, and the case was recently transferred to federal court for the Eastern District of Texas. LPL Financial asks that the case be pursued in arbitration in accordance with the agreement.
According to his FINRA record, Anderson worked for LPL Financial from 2007 until January 2016 when he was fired for for conducting discretionary trading in customer accounts, in violation of firm policy.
Following his discharge from LPL Financial, Anderson was employed by Kovack Securities for a few months, 1/2016-5/2016. Kovack Securities discharged Anderson because they found incomplete signed documents during a firm audit.
Anderson then joined IFS Securities from 5/2016-4/2017. He is not currently registered with any firm.
A discretionary account is one that allows a broker to buy and sell securities without first obtaining the client’s consent. Discretionary trading generally requires that permission be granted by the client in writing. Most accounts are non discretionary, meaning the broker is required to consult with the customer and obtain permission before executing trades. Trades made in non discretionary accounts without consulting with the customer are unauthorized trades.
If you had an account with Jason Anderson and suffered losses due to unauthorized trading, churning, mismanagement or other reasons, contact us to learn how you may be able to recover damages from his employer.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, 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.
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