State says 651 LPL “agents” were operating without registration and also sanctions firm for late filings of customer complaints and other reportable events.
Both companies, which have been rapidly growing their broker sales force in recent years, have raised estimated legal expenses by 10’s of millions over the past year.
New Jersey-based Gladstone Wealth Group, which has been recruiting wirehouse managers in an effort to quickly expand its franchise, signs up 21-year industry veteran.
Michael Struckman, who left Morgan Stanley and his Southeast regional post almost a year ago, affiliated with LPL on Tuesday.
Jeb Bashaw, a Houston-based independent broker with a history of litigation against LPL, receives four-month suspension, fine and a requirement to retake the Series 7 exam for borrowing $200,000 from a customer who was a “longtime friend.”
The fine is tied to a broader $26 million settlement the independent broker-dealer reached last year with state securities regulators.
Texas broker sold a partnership to clients that bought life policy of a terminally ill individual, violating firm and Finra rules, and resulting in $1 million loss to investors.