Articles Posted in LPL Financial

Massachusetts Broker Accused of Defrauding Customers of $3M

James Kenneth Couture, an ex-LPL Financial registered representative, was arrested in July 2021 after turning down a plea deal related to criminal charges that accused him of stealing $3M from investors. Following his decision not to accept the deal, a grand jury added additional criminal counts to the charges of wire fraud and aggravated identity theft, as well as an investment advisor fraud charge. Couture has pleaded not guilty to all criminal charges and was released without bond. 

At the time, Couture was an LPL Financial broker until that broker-dealer fired him in June 2020. He was also a Massachusetts-based investment advisor who ran the Private Wealth Management Group and shell company Legacy Financial Group. 

Glacier Point Advisors Managing Partner is Ordered to Pay Customers More Than $1.2M in Restitution 

Kevin Marshall McCallum, a former LPL Financial stockbroker and the Managing Partner of Glacier Point Advisors has been suspended by the Financial Industry Regulatory Authority (FINRA) for a year.

McCallum is ordered to pay over $1.2M, along with interest, in deferred restitution to customers. He is currently facing more than $4.8M in FINRA arbitration claims from investors for their losses. 

Ex-Middleboro, Massachusetts LPL Financial Advisor Could Be Sentenced to 20 Years in Prison

Paul Richard McGonigle, a former LPL Financial broker, has been arrested for allegedly stealing clients’ retirement assets, including older investors. He is charged with aggravated identity theft, mail fraud, and multiple counts of wire fraud. McGonigle could spend 20 years behind bars if convicted.

According to prosecutors, starting in July 2018, McGonigle caused unauthorized withdrawals from clients’ annuities and persuaded some of them to allow him to invest their funds. Instead, the broker allegedly used their money to pay for his expenses.  He is accused of posing as his victims during calls with annuity companies and signing as them on forms asking for the annuity withdrawals.

Barred Connecticut Financial Advisor Faces Pleads Guilty to Wire Fraud

Matthew O. Clason, a former LPL Financial broker, has pleaded guilty to wire transfer fraud related to his misappropriation of $600K from a 73-year-old Connecticut retiree. Now he could be sentenced to up to 20 years behind bars. The theft is from when Clason worked with the senior investor as a registered representative with LPL Financial and before that with Lincoln Financial Advisors. 

The Financial Industry Regulatory Authority (FINRA) barred Clason in September 2020 right after the Securities and Exchange Commission (SEC) filed parallel charges against him. The brokerage firm had fired Clason the month before, as did Integrated Wealth Concepts where he was a registered investment adviser.  

SSEK Law Firm Is Representing Arkansas Retiree In $500K Customer Dispute 

The Financial Industry Regulatory Authority (FINRA) has barred ex-LPL Financial stockbroker, Rhett Douglas Bedwell after he refused to provide key documents into the self-regulatory organization’s probe into allegations that he invested funds from a client’s IRA in a Ponzi scheme. According to LinkedIn, Bedwell, who is based in Bentonville, Arkansas, is president and a financial advisor at Homestead Wealth Management.

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is representing this customer, an Arkansas retiree, in his $500K broker-dealer negligence case against the brokerage firm. If you are another investor who lost money while working with ex-LPL Financial broker Rhett Bedwell or another registered representative from that firm, contact us today to request your free, no-obligation case assessment. 

San Diego-Based Brokerage Firm Under Scrutiny Over Sierra Income Sales

LPL Financial Holdings (LPLA), the largest independent brokerage firm in the United States, has finalized its acquisition of Lucia Securities, a San Diego-based broker-dealer and registered investment advisor. With over $1.5B in assets, Lucia Securities and its advisors will operate under the name Lucia Capital Group. 

Even prior to the acquisition, our San Diego broker fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at Investorlawyers.com) were investigating Lucia Securities over its sale of Sierra Income Corporation investments to customers. LPL Financial also used to market and sell investments in this nontraded business development company (BDC) to investors but stopped.

Lax Oversight Purportedly Allowed An LPL Broker to Continue Defrauding Customers in Ponzi Scam

The Financial Industry Regulatory Authority (FINRA) has fined LPL Financial Holdings (LPLA) $6.5M due to purported supervisory inadequacies related to recordkeeping, fingerprinting employees that were non-registered representatives, and its financial advisers’ consolidated reports. The self-regulatory organization (SRO) found that due to weak oversight of these consolidated reports, an ex-broker was enabled to continue committing a $5M Ponzi scheme. 

The former registered investment advisor, identified by Advisors Hub as ex-Norwalk, Connecticut broker James Thomas Booth,  pleaded guilty to securities fraud in November. He was sentenced to 42 months behind bars. Booth has been named in 36 customer disputes.  

Ex-LPL Broker Marketed Non-Traded Investments To Mississippi Retiree 

A retired investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against LPL Financial and its former broker, Tamber King Proctor, seeking up to $100K in damages. 

The claimant contends that LPL Financial and Proctor should have never recommended that he invest in the business development company (BDC), FS Energy & Power Fund (FSEP), and the Northstar Healthcare Real Estate Investment Trust (REIT). 

Risky, Illiquid Business Development Company Was Not Suitable for Many Investors

If you are someone who invested in the Sierra Income Corporation, you may have lost money. This business development company (BDC) is a non-traded investment. 

Earlier this year, Sierra Income suffered losses after its announced merger with Medley Capital Corp. and Medley Management Inc. was terminated because of the economic uncertainty caused by COVID-19. Not long after that, the company announced that it was suspending monthly redistributions.

Former LPL Financial Investment Advisor Was Also Was Let Go By  Integrated Wealth Concepts 

The Securities and Exchange Commission (SEC) has filed civil charges accusing former LPL Financial (LPLA) registered representative, Matthew O. Clason, of defrauding an older investor of over $300K. 

In August, Clason, who worked out of Glastonbury, Connecticut, was let go by LPL Financial. He also was fired by Integrated Wealth Concepts, where he was an investment advisor. In September, the Financial Industry Regulatory Authority (FINRA) barred Clason. 

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