PL Financial Sued By Investors Over Unsuitable Annuity Sales
LPL Financial LLC (CRD#: 6413, Boston, Massachusetts) ) is a brokerage firm regulated by Financial Industry Regulatory Authority (“FINRA”) who has reported one hundred twenty-nine regulatory events concerning allegations of LPL Financial’s violations of regulations or rules in the securities industry. Additionally, LPL Financial has also disclosed at least fifty-four FINRA arbitration awards that have been entered against the firm after the firm was found to have caused investors harm. Moreover, LPL Financial representatives, including Robert Douglas Mitchell, Brian James Coleman, Gary Alan Rosenstone, Michael Moffa and Stephen Kent Nolan, have disclosed customer-initiated investment-related disputes that contain allegations of sales practice violations or other misconduct against the representatives or the firm.
May 12, 2017 FINRA Arbitration Involving LPL Financial LLC, Robert Douglas Mitchell
Robert Douglas Mitchell (CRD#: 4123902, Saint Charles, Missouri) has been an LPL Financial LLC registered representative since January 18, 2008. Several customers have reportedly contested Mitchell’s sales practices because of the detriment to their accounts. Specifically, on May 12, 2017, customers filed FINRA Arbitration #17-01184 against Mitchell and LPL Financial. Customers causes of action included: conflicts of interest; unauthorized trading; breach of fiduciary duty; unsuitability; and failure to supervise. Apparently, Mitchell sold the customers alternative investments including covered call options, real estate investment trusts and a variable annuity. Those investments, according to the customers, were risky, speculative, and had not been consistent with the investment objectives that the customers set forth. After reviewing the matter, LPL Financial settled the customers’ claims by paying them $82,500.00. Mitchell reportedly sought for this matter to be expunged from his record. However, the Arbitrators denied his request.
November 27, 2017 Complaint Involving LPL Financial LLC, Brian James Coleman
Brian James Coleman (CRD#: 5334265, Hancock, Michigan) is a past LPL Financial registered representative. He was employed with the firm between June 22, 2011 and April 1, 2016. Several customers joined together on November 27, 2017 to file a complaint with LPL Financial. Their complaint concerned Coleman’s sales practices from March 18, 2015 to April 1, 2016. Customers alleged that there were unauthorized purchases of equity index annuities and fixed annuities. As indicated in the complaint, Coleman apparently guaranteed those customers that they would earn at least three percent on the investments. Supposedly, customers never received those promised returns.
In addition, customers’ blamed the firm or Coleman for the poor performance generated by investments in the customers’ individual retirement accounts. LPL Financial indicated that the customers have requested compensatory damages but are not sure of the amount. The matter is still underway. After his employment with LPL Financial had been terminated, Coleman became a registered representative of Investment Centers of America, Inc. He was employed at that firm from April 1, 2016 to September 28, 2016. Coleman now works for Planmember Securities Corporation.
July 10, 2017 Arbitration Involving Gary Alan Rosenstone
Gary Alan Rosenstone (CRD#: 4660262, Jacksonville, Florida) has been a registered representative of LPL Financial LLC since October 23, 2009. Rosenstone’s FINRA BrokerCheck Report discloses that on July 10, 2017, a customer of LPL Financial filed FINRA Arbitration #17-01527. Apparently, Rosenstone failed to reasonably inform the customer about a variable annuity’s features at the time that Rosenstone recommended the annuity to the customer. Namely, the customer took issue with the lack of clear information about the annuity’s death benefit and income benefit values being different than the cash surrender value upon the customer’s termination of the annuity. Ultimately, LPL Financial LLC settled the customer’s claim on October 17, 2018 by paying the customer $30,000.00.
January 5, 2018 FINRA Arbitration About LPL Financial, Michael Moffa
Michael Moffa (CRD#: 4922901, Tampa, Florida) was associated with LPL Financial LLC from December 10, 2010 to September 28, 2018. His activities resulted in customers collectively filing FINRA Arbitration #18-00066 on January 5, 2018. Those customers claim that from 2013 to 2016, Moffa made bad recommendations to the customers. In particular, customers’ stated that they wanted to invest in low-risk products. Nevertheless, Moffa advised the customers to invest in exchanged traded funds, mutual funds and a variable annuity. Moffa’s investment strategy was seemingly unsuitable for the customers. Additionally, customers alleged that Moffa did not inform them about the risks pertaining to the recommended investments. For this reason, the customers requested $135,000.00 in damages. Although the matter has yet to be decided, Moffa denies the customers’ allegations. Other than LPL Financial, Moffa has been employed by Ameriprise Financial Services, Inc. (2005 to 2010) and IDS Life Insurance Company (2005 to 2006).
February 17, 2017 Arbitration Involving Stephen Kent Nolan’s Sales Practices
Stephen Kent Nolan (CRD#: 5644744, Olympia, Washington) is a prior LPL Financial LLC registered representative. He was employed with the firm between September 13, 2013 and June 1, 2018. As shown in the FINRA BrokerCheck report for Nolan, he is the subject of FINRA Arbitration #17-00454 – a customer dispute. Altogether, the customer’s causes of action include failure to supervise, negligent misrepresentation, breach of contract, breach of the implied covenant of good faith and fair dealing, negligence, and breach of fiduciary duty. Namely, Nolan put the customer in unsuitable investments within the firm’s Strategic Asset Management Program. For this reason, FINRA Arbitrator found LPL Financial liable, ordering the firm on June 20, 2017 to pay the customer $25,000.00 in compensatory damages. Records show that Nolan commenced employment at FSC Securities Corporation on May 24, 2018.
If you have suffered losses by investing with LPL Financial brokers Robert Douglas Mitchell, Brian James Coleman, Gary Alan Rosenstone, Michael Moffa or Stephen Kent Nolan, call (888) 760-6552 for a free consultation with Soreide Law Group’s experienced counsel. Our firm has recovered millions of dollars for investors who have been victim to broker and brokerage firm misconduct. We represent clients on a contingency fee basis and advance all costs.