Massachusetts fines LPL Financial for $250,000 to settle Massachusetts regulatory claims that some of LPL’s brokers misrepresented their qualifications for working with senior investors. According to William F. Galvin, Massachusetts’ top securities regulator, LPL improperly approved brokers' use of senior-specific titles on business cards that did not comply with the state's senior designation regulations. In these times when senior investors are growing in numbers, Massachusetts has rules in place to prevent senior investors from being misled. Apparently, LPL failed to abide by those rules.
According to Massachusetts’ regulators, this is not a case where LPL was not aware that the brokers were using the improper titles. In one instance, LPL had approved the improper title on a broker's business card three times. Massachusetts prohibits brokers from using senior-specific credentials and designations that improperly suggest or imply certification or training beyond that which the broker possesses.
This fine is the latest in a string of regulatory troubles for LPL Financial. In October 2014, the brokerage firm paid $541,000 to reimburse senior investors after it allegedly failed to properly supervise variable annuities transactions involving senior investors. In June 2014, LPL agreed to a $2 million fine and was ordered to pay $820,000 as part of a settlement with the Illinois securities regulators relating to the brokerage firm’s failure to maintain adequate books and records documenting variable annuity exchanges. And in December 2012, Massachusetts sued LPL regarding brokers’ sales of real estate investment trusts.
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If you suffered a monetary loss due to being mislead by LPL Financial, you may have certain legal rights that require your immediate attention. The attorneys at Dimond Kaplan & Rothstein, P.A. have helped recover more than $100 million from some of the largest banks and brokerage firms in the world. Contact us to schedule an appointment or consultation today.