Broker Brent Lott under FINRA Investigation

shutterstock_174495761-300x200According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), broker Brent Van Lott (Lott) is being investigated for allegedly violating FINRA rules.  Lott has also been subject to three customer disputes.

In January 2016, a customer alleged Lott initiated trades without the customer’s written consent.  This dispute was settled for $50,000.

In March 2014, a customer alleged that a third party, acting in concert with Lott, forged the customer’s signature on contracts to acquire insurance policies.  This dispute is pending.

In another pending dispute from December 2013, a customer alleged that he never met Lott who was listed as the selling agent for his contracts.  The customer also alleged that Lott may be aware that the signatures on the contract delivery receipts are not those of the customer.

In October 2014, Lott was terminated from LPL Financial LLC for allegedly submitting equity indexed annuity applications without meeting or discussing them with clients as well as allegedly violating the firm’s document signature policy.

Brokerage firms owe a duty to all of its customers to properly monitor and supervise its employees. The duty to supervise is a critical component of the securities regulatory scheme. Regulatory authorities such as the SEC and FINRA have steadily heightened the supervisory obligations of brokerage firms in recent years. Supervisors have an obligation to respond vigorously to indications of irregularity, often times referred to as “red flags.” A supervisor cannot disregard red flags and must act decisively and specifically to prevent improper conduct by their brokers. The importance of proper supervision is manifested in various types of securities activities. Brokerage firms are responsible for monitoring a broker’s investment recommendations to clients, outside business activities, and representations to investors among other obligations. In addition, brokerage firms are responsible for conducting due diligence on the securities products they sell and devising a written supervisory system to achieve compliance with the securities laws.

Lott has been in the securities industry for over 30 years and was previously registered with Copeland Equities Inc., Sunamerica Securities, Inc., AIG Financial Advisors, Inc., LPL Financial LLC, and Girard Securities, Inc.  Lott is currently registered with Cetera Advisor Networks LLC.

At Gana Weinstein LLP, our dedicated securities attorneys are experienced representing investors who have suffered losses due to the mishandling of their accounts.  The majority of these claims may be brought in securities arbitration before FINRA.  Our consultations are free of charge and the firm is only compensated if you recover.