LPL to pay $295,000 for Ponzi scheme probe in North Carolina

Broker-dealer must pay fine and reimburse the state over 'Robin Hood' case involving disgraced broker serving more than five years in jail for defrauding clients

Oct 27, 2017 @ 3:51 pm

By InvestmentNews

The state of North Carolina has fined LPL Financial $25,000 and ordered the broker-dealer to reimburse the state $270,000 for the cost of investigating a $1.4 million Ponzi scheme.

From May 2012 to December 2014, Charles Fackrell of Booneville, N.C., ran a Ponzi scheme that misused funds from at least 20 clients when he was a broker affiliated with LPL.

He "used his position of trust to solicit victim investors and steer them away from legitimate investments to purported investments with" various "Robin Hood" named entities that Mr. Fackrell controlled and through which he could access victim's funds, according to the U.S. Attorney's office.

(More: Former LPL Financial rep gets more than five years for Ponzi scheme.)

Mr. Fackrell pleaded guilty to one count of securities fraud in April 2016 and was sentenced last December to 63 months in jail.

He also was ordered to serve three years under court supervision after he is released from prison and to pay almost $820,000 in restitution to clients.


What do you think?

View comments

Recommended for you

Featured video


What advice standard is likely to result from harmonization?

Deputy editor Bob Hordt and senior reporter Mark Schoeff Jr. discuss the SEC's effort to meld advice standards for brokers and advisers in a new proposal that is also consistent with the DOL fiduciary rule.

Latest news & opinion

Nontraded BDC sales in worst year since 2010

The illiquid product's three-year decline is partially due to new regulations and poor performance.

Tax reform debate sparks fresh interest in donor-advised funds

Schwab reports new accounts up 50% from last year, assets up 33%.

Nontraded REITs to post worst sales since 2002

The industry is on track to raise just $4.4 billion, well off the $19.6 billion it raised just four years ago, as new regulations hinder sales.

Broker protocol for recruiting a boon for clients

New research finds advisers whose firms have joined the agreement take better care of customers.

Meet our 2017 Women to Watch

Introducing 20 female financial advisers and industry executives who are distinguished leaders, advancing the business of providing advice through their creativity and hard work.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print