If LPL Financial or a broker they back engaged in misconduct that caused damage to your investment portfolio, you could recover your losses. As an investor, you trust your financial advisor and their firm to act in your best interest and offer objective investment advice. When they fail to do so, you can hold them accountable for their negligence or wrongful actions.
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our investment fraud lawyers are experienced in going up against the largest brokerage firms, such as LPL Financial, and our track record affirms our resources and determination. Call us today for a free initial consultation.
About LPL Financial
Founded in 1989 when brokerage firms Private Ledger and Linsco merged, LPL Financial (“LPL”) is the largest independent broker-dealer in the United States, and it offers a wide range of services and products, including investment advisory services.
The firm, which is headquartered in San Diego, California, has $1.14T in brokerage and advisory client assets, serviced or custodied. In 2022, the firm generated approximately $8.601B in annual revenue.
LPL Financial offers financial services and products such as:
- Mutual funds
- Fee-based programs
- Financial planning services
- Investment advisory services
- Proprietary technology
In 2007, Mutual Service Corp., a brokerage firm based in West Palm Beach, Florida, became a part of the LPL Financial family of companies. Over the years, LPL has acquired multiple firms, including AdvisoryWorld (2018), E.K. Riley Investments, LLC (2020), Lucia Securities (2020), and Blaze Portfolio (2020)
In November 2022, it was announced that LPL was to acquire one of its own branch offices for the first time. The office in question, Financial Resources Group Investment Services, is located in Fort Mill, South Carolina, and manages about $40B in advisory and brokerage assets.
LPL has serviced 21,000+ financial professionals and has partnered with 1,100+ financial institutions. Its brokers are licensed in all 50 states, as well as Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
LPL Financial Complaints
LPL Financial is licensed by the Financial Industry Regulatory Authority (FINRA). This means that they must ensure their financial advisors are acting in the interest of their investors and according to the law.
If a client suffers losses due to misconduct or negligent behavior from a financial advisor, the firm may have to repay the damages. The proposed strategy must align with the client’s financial goals and risk tolerance to ensure a responsible and lawful approach.
LPL and financial advisors backed by them have faced numerous legal scandals over the years. According to FINRA’s BrokerCheck report, LPL Financial LLC has 248 disclosures (187 regulatory events, 57 arbitrations, and 4 bonds) and has shelled out millions of dollars.
Reasons for the many fines levied against LPL over the years include:
- Misappropriation of funds
- Breach of fiduciary duty
- Breach of contract
- Misrepresentation and omissions
- Failure to execute
- Margin Trading
- Ponzi schemes
- Unauthorized trading
If you suspect that you fell victim to a financial advisor’s negligent or wrongful actions, seek legal assistance to protect your financial future. Our investment fraud lawyers will investigate your allegations and determine if you have grounds for a lawsuit against LPL Financial.
Failure to Calculate Customer Reserve
In August 2022, FINRA initiated a claim against LPL, finding that between at least Dec. 2018 and April 2020, the firm failed to calculate its customer reserve requirement accurately and failed to maintain a sufficient customer reserve. Therefore, the firm caused two hindsight deficiencies totaling approximately $162M.
LPL was censured and fined $300,000.
Undisclosed Outside Business Activities
In December 2022, FINRA initiated a claim against LPL, finding that the firm failed to investigate red flags related to a registered representative’s undisclosed outside business activities. The firm failed to reasonably supervise transfers of funds by the representative’s firm customers to third parties. As a result of outside dealings, the broker cost LPL customers more than $650k.
LPL was fined $150,000.
A former Georgia-based registered representative of LPL Financial, Blake Richards, is facing accusations from the Securities and Exchange Commission (SEC). He allegedly misappropriated at least $2 million from seven investors over the past five years.
Richards allegedly deceived clients by promising to invest their funds in various financial products but instead redirected the money for personal use. Victims include elderly individuals and those relying on the funds for retirement and life insurance.
Unauthorized Trading and Unsuitable Purchases of Risky Investments
McCallum, a financial professional, is currently facing eight customer disputes and one regulatory action. He agreed to a one-year suspension by FINRA for allegedly advising unsuitable investments to 12 customers, leading to overconcentration in a high-risk business development company.
In accordance with FINRA rules, brokers are required to secure customer consent prior to executing trades. The rules underscore the importance of carefully considering individual financial goals when making investment recommendations. Brokers must establish a reasonable basis for their investment strategy to steer clear of liability associated with negligence or fraud.
Wondering If You Have a Valid Claim? Contact Our Firm Now!
Fighting for justice against investment professionals and large corporations can be intimidating. However, by collaborating with an investment fraud attorney, you can tip the scale to your advantage.
These types of cases often involve complex financial transactions and legal nuances. Having a seasoned attorney by your side ensures that you have an advocate who understands the intricacies of securities law and financial misconduct.
Meyer Wilson has a client-centric approach; we adapt our legal strategy to the specific details of your case. We have represented clients nationwide and internationally in state and federal courts and securities arbitration. As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests. Contact us to discuss your case.