SEC bars ex-LPL rep over variable annuity sales

Massachusetts ordered Roger Zullo to disgorge $1.9 million in commissions

Jul 9, 2018 @ 12:07 pm

By InvestmentNews

The Securities and Exchange Commission has barred a former LPL rep, Roger Zullo, based on a charge he sold unsuitable and "disproportionately large" variable annuities to his clients.

Mr. Zullo, a resident of Massachusetts, was discharged by LPL Financial in December 2016 after the state's securities regulator filed an administrative complaint against the broker, alleging fabrication of client suitability profiles and recommendation of unsuitable variable annuities.

(More: Finra fines Fifth Third Securities $4 million for variable-annuity violations)

In April 2017, Mr. Zullo consented to a Massachusetts Securities Division order permanently barring him from working in the financial business in the state and directing him to disgorge $1,875,348 in commissions he received on VA sales from January 1, 2013, to December 1, 2016. It also ordered him to provide restitution if LPL did not provide "full restitution to fairly compensate investors." In light of Mr. Zullo's financial condition, however, the order waived those requirements, although it directed him to pay a penalty of $40,000.

(More: Finra fines Park Avenue Securities $300,000 over variable annuity sales)

The Financial Industry Regulatory Authority Inc. barred Mr. Zullo in July 2017 after he failed to provide information requested by the regulator about his VA sales practices.

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