Finra bars ex-LPL broker who controlled customer accounts

Cheryl Ann Stallings allegedly violated LPL's policy regarding fiduciary capacities

Nov 20, 2018 @ 2:53 pm

By Bruce Kelly

The Financial Industry Regulatory Authority Inc. barred a former LPL Financial broker Monday who controlled two customers' bank accounts, bypassed LPL's supervision by not disclosing she was named as power of attorney for a firm customer, and was named the beneficiary of a client's trust.

The broker, Cheryl Ann Stallings, was registered with LPL from 2009 to 2017, according to her BrokerCheck report. LPL fired Ms. Stallings when she allegedly violated the firm's policy regarding fiduciary capacities and was joint owner on two different banking accounts of clients, according to the report.

Ms. Stallings could not be reached for comment. Her attorney in the matter, David K. Bissinger, declined to comment.

Ms. Stallings agreed to the settlement without admitting to or denying Finra's findings.

The broker circumvented LPL's systems and procedures from May 2014 to December 2016, according to Finra.

Upon the deaths of the customers, more than $60,000 went to Ms. Stallings from the customers' bank accounts, according to Finra. She also received $248,000 as the beneficiary of a client's estate, according to Finra. Ms. Stallings also violated industry rules when she allegedly made false statements and misrepresentations to LPL on firm questionnaires and forms.

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