{"id":19440,"date":"2021-01-12T10:09:30","date_gmt":"2021-01-12T16:09:30","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=19440"},"modified":"2021-01-13T10:11:46","modified_gmt":"2021-01-13T16:11:46","slug":"lpl-financial-inadequate-supervision-fine","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/","title":{"rendered":"LPL Financial Fined $6.5M by FINRA Over Inadequate Supervision"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">Lax Oversight Purportedly Allowed An LPL Broker to Continue Defrauding Customers in Ponzi Scam<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">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\u2019 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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The former registered investment advisor, identified by Advisors Hub as ex-Norwalk, Connecticut broker <\/span><a href=\"https:\/\/brokercheck.finra.org\/individual\/summary\/1906145\"><span style=\"font-weight: 400;\">James Thomas Booth<\/span><\/a><span style=\"font-weight: 400;\">,\u00a0 pleaded guilty to securities fraud in November. He was sentenced to 42 months behind bars. Booth has been named in 36 customer disputes.\u00a0\u00a0<\/span><\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/\"  title=\"Continue Reading LPL Financial Fined $6.5M by FINRA Over Inadequate Supervision\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>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\u2019 consolidated reports. The self-regulatory organization (SRO) found that due to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":19441,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3877,3741],"tags":[2667,3067,3043],"class_list":["post-19440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lpl-financial","category-securities-fraud","tag-inadequate-supervision","tag-lpl-financial","tag-ponzi-scheme"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>LPL Financial Fined $6.5M Over Inadequate Supervision | SSEK Law Firm<\/title>\n<meta name=\"description\" content=\"LPL Financial has been fined by FINRA for failing to properly supervise its representatives which resulted in customers being defrauded.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"LPL Financial Fined $6.5M Over Inadequate Supervision | SSEK Law Firm\" \/>\n<meta name=\"twitter:description\" content=\"LPL Financial has been fined by FINRA for failing to properly supervise its representatives which resulted in customers being defrauded.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/beatriz-perez-moya-XN4T2PVUUgk-unsplash-1.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"LPL Financial Fined $6.5M Over Inadequate Supervision | SSEK Law Firm","description":"LPL Financial has been fined by FINRA for failing to properly supervise its representatives which resulted in customers being defrauded.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/","twitter_card":"summary_large_image","twitter_title":"LPL Financial Fined $6.5M Over Inadequate Supervision | SSEK Law Firm","twitter_description":"LPL Financial has been fined by FINRA for failing to properly supervise its representatives which resulted in customers being defrauded.","twitter_image":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/beatriz-perez-moya-XN4T2PVUUgk-unsplash-1.jpg","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"LPL Financial Fined $6.5M by FINRA Over Inadequate Supervision","datePublished":"2021-01-12T16:09:30+00:00","dateModified":"2021-01-13T16:11:46+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/"},"wordCount":602,"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/beatriz-perez-moya-XN4T2PVUUgk-unsplash-1.jpg","keywords":["inadequate supervision","LPL Financial","Ponzi Scheme"],"articleSection":["LPL Financial","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/","url":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/","name":"LPL Financial Fined $6.5M Over Inadequate Supervision | SSEK Law Firm","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/#primaryimage"},"image":{"@id":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/#primaryimage"},"thumbnailUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/beatriz-perez-moya-XN4T2PVUUgk-unsplash-1.jpg","datePublished":"2021-01-12T16:09:30+00:00","dateModified":"2021-01-13T16:11:46+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"LPL Financial has been fined by FINRA for failing to properly supervise its representatives which resulted in customers being defrauded.","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/#primaryimage","url":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/beatriz-perez-moya-XN4T2PVUUgk-unsplash-1.jpg","contentUrl":"https:\/\/www.investorlawyers.com\/blog\/wp-content\/uploads\/2021\/01\/beatriz-perez-moya-XN4T2PVUUgk-unsplash-1.jpg","width":640,"height":348,"caption":"LPL Financial has found themselves being sanctioned by FINRA once again for the inadequate supervision of their financial advisors."},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/lpl-financial-inadequate-supervision-fine\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"LPL Financial Fined $6.5M by FINRA Over Inadequate Supervision"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards &amp; 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