LPL Financial is suing a broker it fired last summer after a dispute surfaced between the broker and his ex-wife over the disposition of funds in their joint brokerage accounts.
LPL on Tuesday sued the ex-broker, Christopher Lossing, in U.S. District Court in Nevada, according to a court complaint.
During his time with LPL, Mr. Lossing opened three investment accounts on behalf of himself and his wife, Gabriela Canales: a trust account, a traditional IRA and a Roth IRA, according to LPL's complaint. Those accounts were held jointly by the couple, and Mr. Lossing was the account manager.
In October 2016, Ms. Canales filed for divorce from Mr. Lossing, according to LPL's complaint. A year-and-a-half later, in March 2018, Ms. Canales was granted a divorce and was awarded all of the money in the three jointly held accounts.
But Ms. Canales never received the money from the accounts. Mr. Lossing submitted forms to LPL to move the money and distribute the funds in violation of the divorce decree, according to the complaint. Due to a system error, LPL processed his request, .
Mr. Lossing's family law attorney later told LPL and Ms. Canales that Mr. Lossing had removed the funds, according to the complaint. In June 2018, LPL opened an investigation into the matter, fired him and then soon after settled the matter with Ms. Canales for $292,000, plus a portion of attorney's fees.
Mr. Lossing could not be reached to comment. A spokesman for LPL, Jeff Mochal, did not comment.
The Financial Industry Regulatory Authority Inc. barred Mr. Lossing last month, according to his BrokerCheck report. He had earlier been suspended.