According to InvestmentNews, LPL Financial, LLC (LPL Financial) was recently fined by Massachusetts securities regulators fined for sales practices concerning variable annuities and agreed to reimburse senior citizens $541,000 for surrender charges they paid when they switched variable annuities. LPL Financial and its brokers have been on the defensive from securities regulators many times in recent years concerning a variety of alleged sales practice and supervisory short comings as shown below.
- LPL Financial Broker Reniero Francisco Accused of Misappropriating Millions in Client Funds
- LPL Financial Fined by FINRA for Failing to Supervise Sales of Alternative Investments
- Former LPL Financial Broker Brian Brunhaver Accused of Fraud in the Sale of Non-Traded REITs
- Former LPL Financial Broker Donald Dahn Sanctioned Over Private Loans to Customers
- FINRA Bars LPL Financial Broker for Falsifying Documents
- Former LPL Financial Broker Stephen Brown Accused of Selling Private Real Estate Investments
- FINRA Sanctions Larry Steven Werbel for Selling Away and Other FINRA Violations
- FINRA Bars Gary Chackman Over Allegations of Unsuitable Non-Traded REIT Sales
- Gana LLP Investigates Silver Oak Leasing and Alberto Neira
- The SEC Accused Blake Richards of Stealing $2 Million from Clients
In June, LPL Financial was also fined $2 million and ordered to pay $820,000 in restitution for failing to maintain adequate books and records documenting variable annuity exchanges with the Illinois Securities Department.
In this case, the agreement with the state of Massachusetts covers 157 transactions involving persons 65 or older living in Massachusetts. LPL Financial has agreed to offer the reimbursement to the senior citizens within 15 days of the settlement. The state of Massachusetts alleged that LPL Financial made annuity switch transactions in the absence of accurately disclosed surrender charges or other determinations were not properly documented.
LPL Financial has stated that it has boosted staff and spending on compliance since the beginning of last year in order to avoid future charges concerning the subjects of recent actions concerning high commission products like variable annuities and nontraded REITs.
Investors who have suffered losses through the sale of variable annuities and non-traded REITs may be able recover their losses through arbitration. The attorneys at Gana LLP are experienced in representing investors in cases where brokerage firms fail to supervise their representatives sale of these speculative products. Our consultations are free of charge and the firm is only compensated if you recover.