FINRA Sanctions LPL Stockbroker Over Promissory Notes

Mark Thomas Lamkin of Louisville Kentucky a stockbroker formerly registered with LPL Financial LLC has been fined $7,500.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he borrowed funds from a customer of LPL Financial without authorization and had repeatedly lied about it on LPL Financials’ compliance attestations. Letter of Acceptance Waiver and Consent No. 2018057964201 (Mar. 30, 2020).

According to the AWC, between December of 2011 and August of 2017, while registered with LPL financial, Lamkin procured $1,265,000.00 in loans from a customer. The AWC stated that $740,000.00 was provided to him in 2011 following the execution of a promissory note by Lamkin and his spouse which was secured through the stockbroker’s mortgage. The AWC stated that Lamkin received another $250,000.00 from the customer on April 1, 2017. Lamkin and a business partner also executed a promissory note on August 31, 2017 to procure an additional $275,000.00. The customer has not been fully repaid.

FINRA stated that between December of 2011 and August of 2017, Lamkin was prohibited under LPL Financial policy from borrowing from customers who were not family members. The customer who lent $1,265,000.00 to Lamkin was not a family member. The stockbroker was also administered compliance questionnaires between 2012 and 2017 in which he falsely claimed not to have borrowed customer funds. FINRA found that Lamkin violated FINRA Rules 2010 and 3240.

FINRA Public Disclosure reveals that Lamkin has been identified in three customer initiated investment related disputes containing allegations of his misconduct while employed with LPL Financial. On April 9, 2019, a customer initiated investment related complaint involving Lamkin’s conduct was settled for $61,852.07 in damages based upon allegations that the customer was placed into unsuitable investments including a real estate security and an annuity by Lamkin. The Statement of Claim also alleges that misrepresentations and omissions had been made by Lamkin and that he altered the customer’s account documentation.

On May 8, 2019, another customer initiated investment related complaint involving Lamkin’s conduct was settled for $15,000.00 in damages based upon allegations of an index annuity being misrepresented by the stockbroker. Lamkin is also the subject of a customer initiated investment related arbitration claim in which the customer requested $115,000.00 in damages based upon allegations of Lamkin’s bad advice and misrepresentations pertaining to real estate investment trust products sold to the LPL Financial customer. FINRA Arbitration No. 19-02277 (Aug. 13, 2019).