Brian L. Stephan, Formerly with LPL in Ohio, Accused of Doubling Elderly Client's Commissions

BRIAN LAWRENCE STEPHAN (Brian L. Stephan) CRD#: 4222796, a broker from Ohio, was accused by the Financial Industry Regulatory Authority (FINRA) of recommending and causing the execution of unsuitable investments for an 88-year-old client. The FINRA complaint alleges that Brian L. Stephan recommended that the elderly client invest in mutual fund Class A shares in twenty different mutual fund families.  The FINRA complaint states that on approximately ten occasions, Stephan recommended a mutual fund purchase in an amount that was relatively slightly less than the level required for a discount on sales charges, discounts she could have received, in order to generate higher commissions for himself. According to the FINRA complaint, for the Class A share mutual fund transactions this 88-year-old client paid over $60,000 in commissions. Had the client invested in larger amounts across fewer fund families, she could have benefited from sales charge discounts and reduced her costs by approximately $30,000.
Allegedly, Brian L. Stephan recommended unsuitable investments in 95 trades from May of 2012 through May of 2014. At that time, according to FINRA’s BrokerCheck, Stephan was with LPL FINANCIAL LLC of XENIA, OH. The client opened her account at age 88 with $780,000. The allegations go on to state that he also falsely described the trades of the A-class fund shares as unsolicited, falsely indicated that the client requested the switches because she was dissatisfied with the investments, and changed her investment goals allegedly without her knowledge to Growth and Income from Income with Capital Preservation.
Brian L. Stephan’s initial investments for the elderly client were in five funds with loads ranging from 3.98% for a BlackRock Large-Cap Value Fund, to 5.71% on an Optimum Large-Cap Value Fund.  Stephan invested $75,000 in all but the Optimum Fund—which was the only fund that had a break-point effective at $75,000 and in which Stephan invested $70,000, according to the FINRA complaint.
According to FINRA’s BrokerCheck, which is available to the public on FINRA’s website, Brian L. Stephan has been in the securities industry for 18 years and has been with 4 firms.
Stephan is currently with since 12/1/2017:
AMERICAN WEALTH MANAGEMENT, INC.
354 N. Detroit St.
Xenia, OH 45385
Some of the firms he was previously listed with were:
08/18/2014 - 12/01/2017 COMMONWEALTH FINANCIAL NETWORK - Xenia, OH
11/12/2003 - 08/27/2014  LPL FINANCIAL LLC - XENIA, OH
If you or an elderly family member suffered financial losses due to the actions or recommendations or former LPL FINANCIAL LLC of XENIA, OH broker, Brian L. Stephan, currently with American Wealth Management in Xenia, OH, contact Soreide Law Group and speak to an experienced securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents clients nationally before FINRA and we operate on a contingency fee basis.