LPL Stockbroker Sanctioned For Outside Business Activities

FINRA Securities Arbitration Lawyers

Jason C. Labelle of Pittsfield Massachusetts a stockbroker formerly registered with LPL Financial LLC has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that the stockbroker engaged in an outside business activity without disclosing it to LPL Financial. Letter of Acceptance Waiver and Consent No. 2017055192701 (Jan. 14, 2020).

According to the AWC, between February of 2016 and May of 2017, Labelle took part in a real estate venture away from LPL Financial. The AWC stated that Labelle aided a corporation who developed nineteen custom homes on thirteen acres. FINRA revealed that Labelle worked with industry professionals for purposes of selling properties, and updated agents regarding the development of those properties. FINRA indicated that at least one of LPL Financial’s customers whose accounts were serviced by the stockbroker had contributed money in the real estate venture.

The AWC stated that there was no point in which LPL Financial was provided with any information from Labelle about his real estate activities. In fact, Labelle concealed his activities when completing the compliance questionnaires administered to him by the securities broker dealer. FINRA determined that Labelle’s conduct was violative of FINRA Rules 2010 and 3270.

FINRA Public Disclosure reveals that Labelle has been identified in four customer initiated investment related disputes containing allegations of his misconduct while employed with Edward Jones and LPL Financial. Specifically, a customer filed an investment related complaint involving Labelle’s conduct in which the customer requested more than $5,000.00 in estimated damages supported by accusations that during the time that Labelle was associated with Edward Jones, misrepresentations or omissions had been made to the customer in regard to transactions and sales charges; and the customer was charged commissions that were excessive.

Labelle is referenced in another customer initiated investment related written complaint in which the customer sought unspecified damages based upon allegations that unit investment trust transactions effected in the customer’s account were not suitable given the customer’s investment profile; and the customer suffered unwarranted losses because of Labelle. Also, a customer filed an investment related complaint concerning Labelle’s activities in which the customer requested $23,000.00 in damages founded upon allegations that the customer suffered undue tax consequences because of the stockbroker’s handling of the customer’s account while he was registered with Edward Jones.

In addition, Labelle is referenced in a customer initiated investment related civil action brought in the Superior Court of Massachusetts on June 8, 2017 in which the customer sought more than $5,000.00 in estimated damages based upon accusations that during the period that Labelle was associated with LPL Financial, misrepresentations had been made to the customer concerning promissory notes recommended by the stockbroker; and withdrawals were effected from the customer’s account without permission to fund the note purchase. Civil Action No. 1876CV00206 (Aug. 7, 2018).

Labelle’s registration with LPL Financial has been terminated as of December 20, 2019.