Investors Sue LPL Financial For Unauthorized Trading

stockbrokerfraud15 - Investors Sue LPL Financial For Unauthorized Trading

Charles Caleb Fackrell of Yadkinville North Carolina a stockbroker formerly employed by LPL Financial LLC is the subject of a customer initiated investment related arbitration claim in which the customer sought compensatory damages founded on accusations that (1) penny stock and equities trades were placed in the customer’s account by Fackrell even though Fackrell lacked the customer’s consent and (2) trades executed in the customer’s account were not suitable for the customer given the speculative nature of the equities. FINRA Arbitration No. 18-02797 (Aug. 8, 2018).

FINRA Public Disclosure reveals that Fackrell has been identified in eleven more customer initiated investment related disputes containing allegations of Fackrell’s misconduct during the time that Fackrell was associated with LPL Financial LLC. In particular, Fackrell is referenced in a customer initiated investment related arbitration claim where the customers were collectively awarded $107,677.00 in compensatory damages based upon LPL Financial LLC being found liable on the customers’ claims including negligence, breach of contract, violation of North Carolina Securities Act, breach of fiduciary duty, misrepresentation, and the failure to supervise the securities transactions Fackrell placed in the customer’s account. FINRA Arbitration No. 15-01640 (Dec. 6, 2016).

Subsequently, Fackrell was subject of a customer initiated investment related arbitration claim in which LPL Financial LLC was ordered to pay customers a total of $331,650.00 in damages based upon findings that LPL Financial was liable for: violating the North Carolina Securities Act; violating fiduciary and contractual obligations to the customers; misrepresenting the terms, conditions, risks or other investment related information; negligently handling the customers’ accounts; failing to supervise Fackrell’s activities in the customers’ accounts; and defrauding the customers. FINRA Arbitration No. 15-02117 (Dec. 19, 2017).

Another customer initiated investment related arbitration claim concerning Fackrell’s activities was resolved for $60,000.00 in damages based upon accusations of Fackrell, inter alia: having utilized the customer’s funds for his personal benefit; misrepresenting over-the-counter equities and annuity products; and having placed unauthorized, excessive, and unsuitable transactions in the customer’s account. FINRA Arbitration No. 16-01633 (Oct. 2, 2017). Thereafter, a customer initiated investment related arbitration claim involving Fackrell’s conduct was settled for $293,578.52 in damages supported by allegations that unsuitable investments, including equities and a variable annuity product, had been sold to the customer; misrepresentations had been made to the customer concerning the investments; and the products were solicited by Fackrell away from the firm. FINRA Arbitration No. 16-00565 (Jan. 10, 2018).

Moreover, a customer initiated investment related arbitration claim regarding Fackrell’s activities was resolved for $900,663.53 in damages founded on accusations that false or misleading statements had been made by Fackrell to the customer; the customer’s documents had been forged by Fackrell; and the investment transactions had been executed by Fackrell outside the firm’s auspices. FINRA Arbitration No. 16-03325 (July 16, 2018).

FINRA Public Disclosure also confirms that Fackrell has been barred from associating with any FINRA member in any capacity based upon allegations that Fackrell obstructed a FINRA investigation into accusations of: (1) Fackrell engaging in private securities transactions while employed with LPL Financial LLC without notifying the firm or procuring authorization from the firm; and (2) Fackrell converting funds belonging to customers of the firm. Letter of Acceptance Waiver and Consent No. 20140437052 (Feb. 26, 2015). According to the AWC, Fackrell knew that information and documentation had been requested from him by FINRA; however, Fackrell refused to honor FINRA’s requests. FINRA found Fackrell’s failure to produce information and documentation to be violative of FINRA Rules 2010 and 8210.