Donald Woods, a former representative who had been affiliated with LPL in Kentucky, has been fined $10,000 and suspended for six months by Finra for inflating the net worth of customers on firm documents.
The Financial Industry Regulatory Authority Inc. said that Woods inflated the wealth of a retired couple and a single elderly customer to circumvent LPL restrictions so that he could sell the clients real estate investment trusts. Finra said Woods earned $5,600 from the sales, which he will have to disgorge, according to Finra’s letter of acceptance, waiver and consent.
Woods, who began his career in 1981, was affiliated with LPL from January 2010 to January 2017, when LPL terminated his registration due to a business dispute. He was with Thurston Springer Financial until 2018 and is no longer employed in the securities industry.
Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.
From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
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Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
