FINRA Charges LPL Stockbroker In Unauthorized Trading Investigation
Louis Mark Miller of Jericho New York a stockbroker formerly employed by LPL Financial LLC has been charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Miller failed to testify before FINRA personnel during an investigation into accusations of Miller’s unauthorized trading in customers’ brokerage accounts when he was employed by LPL Financial. Department of Enforcement v. Louis Mark Miller Disciplinary Proceeding No. 2017056829901 (July 26, 2019).
According to the Complaint, a letter sent to Miller by FINRA personnel on October 17, 2018 under Rule 8210 requested that he complete and submit a questionnaire FINRA provided him in reference to his scheduled appearance for recorded testimony on November 14, 2018. Allegedly, Miller’s legal counsel confirmed for FINRA personnel on October 19, 2018 that its request was received by Miller. Yet, Miller purportedly failed to submit this questionnaire by November 1, 2018, and neglected to make an appearance to provide recorded testimony.
The Complaint stated that a second letter had been sent to Miller’s counsel by FINRA on November 15, 2018 in regard to Miller’s failure to provide recorded testimony on November 14, 2018. That letter reportedly instructed Miller to make an appearance on December 12, 2018. Miller allegedly contacted FINRA on the day he was scheduled to testify to confirm he received the request but would not comply.
The Complaint further alleged that on June 18, 2019, a third letter had been sent by FINRA to Miller’s counsel in regard to the stockbroker’s failure to respond to prior FINRA requests. The Complaint indicated that a final attempt to procure Miller’s documentation was made by FINRA in advance of the scheduled testimony but to no avail. Miller allegedly failed to submit the questionnaire or make an appearance before FINRA.
FINRA apparently noted in the letter to Miller’s counsel that Miller’s failure to provide the recorded testimony would constitute violations of FINRA Rules 8210 and 2010. Indeed, the Complaint stated that the requests FINRA made under Rule 8210 warned that Miller’s refusal to respond could serve a basis for FINRA to bar him from the securities industry. FINRA Department of Enforcement alleged that Miller’s failure to comply with FINRA’s requests constituted violations of FINRA Rules 2010 and 8210.
Miller was discharged by LPL Financial on December 8, 2017 supported by accusations that he executed discretionary trades in customer accounts; conduct violative of LPL Financial policy.