Massachusetts Securities Regulator Settles with LPL for Senior Investor Fraud | Cold Spring Advisory Group

Massachusetts Securities Regulator Settles with LPL for Senior Investor Fraud

July 15, 2015

Boston-based independent financial advisory firm LPL has settled with Massachusetts Securities Regulator William Galvin for $250,000 after the firm allegedly allowed its brokers to incorporate false senior-specific titles on their business cards without satisfying the necessary qualifications. The settlement, which includes a censure and a cease-and-desist order, was finalized after reports that the firm approved at least one broker’s business card on several occasions.

None of the brokers involved were identified in the settlement, yet InvestmentNews reports that as a result of the allegations, the company plans to implement “enhanced review procedures”. Massachusetts was the first state to ban titles that presented false designations or qualifications when dealing with senior investors.

This is not the first time that the Commonwealth of Massachusetts has gone after LPL. In May of this year, the rapidly growing firm was ordered to pay a $10 million fine and $1.7 in restitution in order to resolve a variety of allegations related to “broad supervisory failures in a number of key areas.”