Investors Sue LPL For Unauthorized Trading
Kevin Marshall McCallum of Birmingham Alabama a stockbroker formerly associated with LPL Financial LLC has been referenced in a customer initiated investment related arbitration claim in which the customer requested damages estimated to exceed $5,000.00 supported by allegations that unauthorized transactions were facilitated in the customer’s account during the period in which McCallum was employed by LPL Financial. The claim also alleges that purchases of Medley Capital Corporation – a thinly traded company at the time – failed to be suitable and that the customer’s investment portfolio had been overconcentrated in bad equities. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-03448 (Nov. 18, 2019).
This is not the first time that McCallum has been the subject of an investor dispute in which his sales practices have been questioned. FINRA Public Disclosure additionally reveals that on April 19, 2019, a customer filed an investment related arbitration claim in reference to McCallum’s conduct where the customer sought $2,200,000.00 in damages based upon accusations that margin was used without authorization to effect securities purchases. FINRA Arbitration No. 19-01028. According to the claim, the LPL Financial customer fell victim to risky and fraudulent transactions initiated by the stockbroker that included investments in exchange traded funds, options and mutual funds.
McCallum’s registration with LPL Financial was terminated on July 5, 2019.