LPL to pay $295,000 for Ponzi scheme probe in North Carolina

Broker-dealer must pay fine and reimburse the state over 'Robin Hood' case involving disgraced broker serving more than five years in jail for defrauding clients.
OCT 27, 2017

The state of North Carolina has fined LPL Financial $25,000 and ordered the broker-dealer to reimburse the state $270,000 for the cost of investigating a $1.4 million Ponzi scheme. From May 2012 to December 2014, Charles Fackrell of Booneville, N.C., ran a Ponzi scheme that misused funds from at least 20 clients when he was a broker affiliated with LPL. He "used his position of trust to solicit victim investors and steer them away from legitimate investments to purported investments with" various "Robin Hood" named entities that Mr. Fackrell controlled and through which he could access victim's funds, according to the U.S. Attorney's office. (More: Former LPL Financial rep gets more than five years for Ponzi scheme.) Mr. Fackrell pleaded guilty to one count of securities fraud in April 2016 and was sentenced last December to 63 months in jail. He also was ordered to serve three years under court supervision after he is released from prison and to pay almost $820,000 in restitution to clients.

Latest News

Asset-Map, VastAdvisor launches help solve advisors' growth puzzle
Asset-Map, VastAdvisor launches help solve advisors' growth puzzle

Asset-Map makes a bet on a partner ecosystem while VastAdvisor goes deeper on AI and CRM integration to help advisors grow.

RightCapital claims industry first with AI agent for financial planning
RightCapital claims industry first with AI agent for financial planning

The fintech firm's Iris agent arrives as other financial planning tech providers move quickly to incorporate AI into their workflows.

Advisor moves: LPL lands $500M Tribute Financial team from United Planners
Advisor moves: LPL lands $500M Tribute Financial team from United Planners

Also, a Fidelity veteran goes indie with Osaic OSJ Innovative Financial Group, and Citizens welcomes a sports and entertainment-focused trio previously overseeing $800 million from Morgan Stanley.

Wealth management star Dimple Shah joins Humanity Labs to help drive AI push
Wealth management star Dimple Shah joins Humanity Labs to help drive AI push

Former Osaic executive Shah has joined the self-described AI workforce company as managing director in charge of its engagement efforts with wealth firms.

SEC probes private equity continuation vehicles amid surge in deals
SEC probes private equity continuation vehicles amid surge in deals

The SEC enforcement division is reportedly digging into potential conflicts of interest, valuations, and disclosure in fast-growing fund manager-led transactions.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.