Michael Scott Lincoln of San Diego California a stockbroker formerly employed by LPL Financial LLC is referenced in a customer initiated investment related arbitration claim which was settled for $275,000.00 in damages founded on allegations that (1) trades placed in the customer’s investment account were unsuitable for the customer (2) the customer’s investment affairs were administered negligently (3) transactions had been executed in violation of California laws (4) fiduciary duties were violated and (5) the customer had been defrauded in connection with promissory note and mutual fund products sold to the customer during the time that Lincoln was a supervising stockbroker with LPL Financial LLC. Financial Industry Regulatory Authority (FINRA) Arbitration No. 16-03527 (Apr. 19, 2017).

FINRA Public Disclosure additionally reveals that this is the first customer initiated investment related arbitration claim in regard to Lincoln’s conduct since he was sanctioned by FINRA. In particular, Lincoln has been fined $15,000.00 and suspended from associating with any FINRA member in any capacity based upon consenting to findings that during the time Lincoln was associated with LPL Financial LLC: (1) Lincoln neglected to supervise one of the firm’s stockbrokers who engaged in an unapproved outside business activity and who procured loans from customers without authorization; and (2) Lincoln falsified statements to the firm in regard to both his supervision of the stockbroker who engaged in those unauthorized activities as well as Lincoln loaning funds to that stockbroker. Letter of Acceptance Waiver and Consent No. 2015045352901 (Sept. 20, 2016).

Evidently, Lincoln authorized the documents provided by stockbroker, RS, in reference to an outside business activity that RS engaged in. The AWC stated that Lincoln knew that information RS disclosed in reference to that outside business activity was false, and that Lincoln failed to investigate the true nature of activities RS engaged in which consisted of borrowing funds from customers for an outside business activity. Evidently, a total of seven customers lent RS a total of $2,250,000.00 relating to outside real estate transactions. Those loans were reportedly prohibited by the firm and lacked any supervision from Lincoln. Lincoln evidently lied to his firm about the loans – some of which apparently came from Lincoln himself. FINRA found Lincoln’s conduct violative of NASD Rule 3010(b) and FINRA Rule.

The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source.

Questions or comments regarding the source or accuracy of any information, including any subsequent developments, should be directed to:  [email protected]

This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship. Attorney Advertisement. See Important Disclaimer.

Guiliano Law Group, P.C.

Our practice is limited to the representation of investors. Over the last three decades, we have recovered more than a hundred million dollars for more than 1,000 injured investors from all over the United States and several foreign countries. We accept representation purely on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a confidential consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.

For more information concerning common claims against stockbrokers and investment professionals, please visit us at stockbrokerfraud.com

To learn more about FINRA Securities Arbitration, and the legal process, please visit us at securitiesarbitrations.com

Stockbroker Fraud. Securities Arbitration and Investment Fraud Lawyers.  
National Practice. Contingent Fee. Confidential Free Consultation.

 (877) SEC-ATTY

1700 Market Street, Suite 1005
Philadelphia, PA 19103
Direct: (215) 413-8223
Toll Free: (877) 732-2889

1260 South Soto Street, Suite 7
Los Angeles, California 90023
Direct: (213) 255-3475
Toll Free: (877) 732-2889

2750 NE 185th Street, Suite 302
Aventura, Florida 33180-2877
Direct: (786) 490-2413
Toll Free: (877) 732-2889

See Important Disclaimer

Tags: ,

No comments yet.

Leave a Reply

Name (required)

Email (will not be published) (required)