Indiana Secretary of State Fines LPL Financial (Linsco Private Ledger) $450,000 for Failing to Supervise Its Indiana Brokers
Written by Scott L. Starr
December 3, 2018
The securities industry is designed so that the first line of defense against fraud is the requirement that a brokerage firm must police its own brokers. A principal rule in the securities industry is that brokerage firms are required to supervise each of its broker’s offices.
LPL Financial has recently agreed to pay a civil penalty of $450,000 for “various deficiencies” related to the supervision of its Indiana brokers, the Indiana Secretary of State’s Office recently reported. In addition to the payment of this civil penalty, Linsco Private Ledger agreed to conduct a third party compliance review of its policies and procedures in Indiana and to provide a report on the findings to the Indiana Securities Commissioner within 180 days.
Any brokerage firm that fails to properly supervise its brokers definitely puts its customers at risk of being victimized by fraud. Starr Austen & Miller has represented over a 1,000 investors down through the years who have been defrauded on a variety of different types of investments, and the brokerage firms have typically been held responsible for failing to supervise their sales force. If you or a loved one believe you may have been the victim of securities fraud or investment advisor malpractice, contact Starr Austen & Miller for a free, no obligation consultation.
The team of investment fraud lawyers at Starr Austen & Miller LLP fights for the protection of investors and handles cases involving securities arbitration misrepresentation, overconcentration, broker fraud, negligence and breach of trust.