The brokerage, LPL Financial, LLC, was fined $100,000 November 22, 2011, by the State of Oregon for failing to supervise a broker that sold high-risk oil and gas partnerships to clients, many of whom were elderly.
According to the Oregon Department of Consumer and Business Services, a former LPL representative, Jack Kleck, sold the oil and gas investments to many Oregon residents. Given their age and investment objectives, the investments were not suitable.
On the BrokerCheck website of the Financial Industry Regulatory Authority Inc., or FINRA, Jack Kleck was a broker with LPL in La Grande, Ore., from 2000 to 2006, when he resigned, according to his profile. He was then with Pacific West Securities Inc., four months and has not been registered with another firm since 2007. The State of Oregon revoked his license in 2007 and fined Kleck $100,000 but suspended $70,000.
Having around 12,800 registered representatives and investment advisers, LPL Financial is the largest independent broker-dealer in the country.
According to the statement from the department, LPL failed to supervise the actions of Jack Kleck and failing to ensure that company policies and procedures were enforced. Many of Kleck’s clients were elderly– 70s and 80s, and may not have been capable of making sound investment decisions, the Department said.
“LPL Financial has taken numerous steps to improve its compliance and supervisory practices,” the department said. “The company has increased the number of employees devoted to compliance- and supervision-related functions, increased its pre-sale review of transactions and enhanced branch office examinations.”
Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have experienced losses through LPL Financial, LLC, or Jack Kleck, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.