LPL Financial is a limited liability company and registered broker-dealer firm with both the Securities Exchange Commission (SEC) and the Financial Industry regulatory Authority (FINRA). LPL was formed in California in 2010 and the main office is located in Boston, Massachusetts with offices in all fifty states.
For such a young firm, LPL has an unusually high number of customer complaints. The firm alone has an astonishing 48 regulatory events in its repertoire and has been party to 46 arbitrations with FINRA. This does not include the numerous complaints customers have filed against LPLs individual brokers.
- On June 30, 2014 LPL was fined $2 million, $819,885 of which was restitution to customers, for failing to properly maintain records for variable annuity transactions.
On March 24, 2014 LPL was fined $950,000 for failing to properly supervise the offering and selling of certain alternative investments, such as oil and gas investments, Real Estate Investment Trusts (REITs), hedge funds, and managed future funds.
- On May 21, 2013 LPL was hit with the largest fine ever for an email case . LPL was fined $7.5 million and ordered to pay $ 1.5 million to compensate affected customers as a result of 35 separate and significant email system failures. According to FINRA, these failures prevented LPL from viewing hundreds of millions of emails. LPL also made material misstatements to FINRA during FINRA’s investigation of these problems. In 2012 LPL told FINRA the email issue had been discovered in 2011 and that there were no red flags. This was a lie. LPL had been failing to meet its obligations since 2007 and had ignored multiple red flags.
- On December 31, 2012 LPL was fined $400,000 for failing to establish and maintain an adequate supervisory system and failing to execute millions of mutual fund transactions.
- On February 6, 2013 LPL was fined $500,000 for violating Massachusetts requirements in addition to failure to supervise and train its agents in connection with the sale of non-traded REITs.
The above mentioned fines and violations barely scratch the surface of LPL Financial’s laundry list of FINRA complaints. It also does not begin to touch the number of customer complaints that have been filed against LPL’s brokers. Below is a list of LPL brokers who have had customer or regulatory complaints against them. If you or someone you know has lost money investing with LPL Financial or any of the individuals below, please contact the securities fraud law firm, Fitapelli Kurta today. Our firm will evaluate your complaint against LPL for free and will let you know if you have a viable action.