Finra bans LPL broker for depositing client funds into own bank account

The Financial Industry Regulatory Authority Inc. has barred an LPL Financial broker for depositing client funds into his…

The Financial Industry Regulatory Authority Inc. has barred an LPL Financial broker for depositing client funds into his personal bank account.

The broker, Dominic Thomas DeBruin, was investigated for placing client funds into a bank account he controlled, according to a settlement notice issued Friday by Finra’s department of enforcement.

The funds were “related to potential private securities transaction” that were not disclosed to LPL, the notice said.

Last month, Finra contacted Mr. DeBruin for documents, requesting him to appear and give on-the-record testimony, which he declined. In settling the matter, Mr. DeBruin agreed to be permanently barred without admitting or denying Finra’s findings.

Denis Patrick Kelleher, Mr. DeBruin’s counsel, declined to comment.

According to Mr. DeBruin’s BrokerCheck profile, he first entered the securities industry in 1996 where he was registered with First Hanover Securities Inc., and Continental Broker-Dealer Corp., for a short period before jumping to Argent Securities in 1997. Mr. DeBruin was discharged from Argent Securities within four months of employment, although he claimed he resigned prior to the termination.

He later held short-term roles with Paragon Capital Corp. and Paulson Investment Co., before landing at Prudential Investment Management Services in 1999, where he stayed for five years. Starting in 2005, Mr. DeBruin worked for Waddell & Reed for seven years, and later joined LPL Financial in 2012. Mr. DeBruin had four financial disputes that were settled, according to his profile.