LPL Financial Advisor Sonya D. Camarco Accused by SEC of Misappropriating over $2.8 Million of Client Funds

shutterstock_76996033-300x200The investment lawyers of Gana LLP are investigating allegations by the Securities and Exchange Commission (SEC) finding that LPL Financial LLC (LPL) advisor, Sonya D. Camarco (Camarco), misappropriated over $2.8 million in investor funds from her clients and customers. LPL terminated Camarco in August 2017 “for depositing third party checks from client accounts into a bank account she controlled and accessing client funds for personal use.”

Camarco is a 23-year industry veteran. From 1993 to 2000, Camarco was associated with Merrill Lynch, Pierce, Fenner & Smith Incorporated. Thereafter, from 2000 to 2004, Camarco became registered with Morgan Stanley DW Inc. Finally, from 2004 to 2017, Camarco was associated with LPL Financial LLC.

According to FinancialPlanning, Camarco faces five counts of fraud charges and an asset freeze after investigators said she used third-party checks and other means to forward client funds towards personal expenses. Camarco allegedly forged clients’ signatures on at least 120 first- and third-party checks, having them sent to a post office box at a UPS store and signing them over to an entity she controlled.

According to BrokerCheck records, beginning in approximately 2004 and continuing through at least August 2017, Camarco allegedly used investor accounts to pay hundreds of thousands of dollars in credit card bills, took cash advances on investor accounts, transferred investor funds directly to her personal bank account, and funneled investor funds into her personal bank accounts. Camarco allegedly spent investor funds on the purchase of a house and the payment of her personal mortgage.

Our firm represents investors who are the victims of schemes, like Camarco’s, to hold the brokerage firm responsible. Under the FINRA rules, a brokerage firm owes a duty to properly monitor and supervise its employees. In order to properly supervise their brokers, each firm is required to establish and maintain a system to supervise the activities of each registered representative to achieve compliance with the securities laws. Misappropriating funds often occurs in environments where the brokerage firms either fail to put in place a reasonable supervisory system or fails to actually implement that system and meet supervisory requirements.

Investors who have suffered losses may be able to recover their losses through securities arbitration. The attorneys at Gana LLP are experienced in representing investors in cases where their broker has acted inappropriately. Our consultations are free of charge and the firm is only compensated if you recover.