FINRA Sanctions LPL Stockbroker For Unauthorized Trading
Benard Wayne Gann of Tyler Texas a stockbroker formerly associated with LPL Financial LLC has been fined $5,000.00 and suspended for 30 days from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on his consent to findings that he facilitated an unauthorized transaction in a customer’s account. Letter of Acceptance Waiver and Consent No. 2018059526701 (June 23, 2020).
According to the AWC, on May 4, 2018, during the time that Gann was associated with LPL Financial, he effected the sale of a stock from the account of LP who was a customer of the securities broker dealer.
The AWC stated that Gann took direction from another stockbroker MG who had previously been responsible for the management of LP’s accounts until MG was terminated by that securities broker dealer in 2018. MG was also suspended from associating with any FINRA member in any capacity based upon allegations of MG’s violation of FINRA rules.
The AWC stated that there was no authority provided to MG by LP which would have allowed for MG to request trades on LP’s behalf. There was also no point in which Gann ever procured permission from LP before he executed a transaction. FINRA determined that Gann’s activities were violative of FINRA Rule 2010.
FINRA Public Disclosure reveals that a customer initiated investment related complaint pertaining to Gann’s conduct was settled for $8,000.00 in damages supported by allegations of unapproved or inappropriate options transactions during the period in which Gann was employed by First Union Securities.
On July 31, 2018, Gann was discharged by LPL Financial based upon accusations of the stockbroker’s unauthorized trading in a customer’s account.