Galvin announces settlement with LPL allowing investors to get their money back

Settlement is part of a $26 million agreement between the independent broker dealer and the North American Securities Administrators Association.
JUN 13, 2018

Secretary of the Commonwealth William F. Galvin announced Wednesday that his office had reached a settlement with LPL Financial that allow Massachusetts investors who were improperly sold securities by the firm over a 12-year period to get their money back. The settlement was reached after Mr. Galvin helped lead a multi-state effort to secure a $26 million settlement with LPL. As a result of the settlement, LPL will be required to buy back the illegally sold securities from investors not only in Massachusetts, but nationwide, with interest. "This agreement will give Massachusetts investors who were misled when they were offered these unregistered securities the chance to get their money back, with interest, and re-invest it in a way that works best for them," he said. The settlement with LPL was reached after a North American Securities Administrators Association task force led by Massachusetts and Alabama determined LPL had been negligent in its duty to supervise its agents and employees and to prevent the sale of unregistered securities to its customers over the past 12 years. Customers who were sold unregistered, non-exempt securities since October 2006 will be offered the full amount paid, plus 3% interest. LPL has also agreed to a full review to assess its compliance with all state securities requirements.

Latest News

Duo charged with posing as 49ers player, financial advisor to defraud women of $1.3M
Duo charged with posing as 49ers player, financial advisor to defraud women of $1.3M

Federal prosecutors say the scheme used fake investment accounts and a fictitious financial advisor to lure victims into romance-fueled fraud.

Convicted ex-Morgan Stanley broker ordered to pay firm $8.7 million
Convicted ex-Morgan Stanley broker ordered to pay firm $8.7 million

Morgan Stanley sought to claw back recruiting bonus money from Darryl Cohen.

Referrals aren’t luck: Why intentional COI strategy is the future of advisor growth
Referrals aren’t luck: Why intentional COI strategy is the future of advisor growth

Referrals from centers of influence may open the door, but the real key to success for advisors comes from clarity about their ideal clients and where they want to show up.

FiNet, Raymond James land California and Washington advisor teams
FiNet, Raymond James land California and Washington advisor teams

Three advisor groups overseeing more than $700M in combined client assets head to new firms.

Retirement crisis fears hit record high as debt and inflation squeeze Americans
Retirement crisis fears hit record high as debt and inflation squeeze Americans

New research finds most Americans fear a US retirement crisis, while skepticism grows toward AI financial advice and crypto in retirement plans.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

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