FINRA Bars LPL Stockbroker In Investigation
Michael Radford Severance of Edina Minnesota a stockbroker formerly employed by LPL Financial LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Severance failed to cooperate with a FINRA investigation into accusations of him engaging in undisclosed outside business activities. Letter of Acceptance Waiver and Consent No. 2019061052201 (Nov. 25, 2019).
According to the AWC, an investigation had been opened into Severance’s activities by FINRA following receipt of a Uniform Termination Notice of Securities Industry Registration (also known as a Form U5) from LPL Financial. The Form U5 indicated that on December 31, 2018, Severance was discharged by the securities broker dealer for, inter alia, engaging in prohibited outside business activities. The AWC stated that on November 11, 2019, Severance was asked to provide documentation and information to the regulator as part of its investigation into his possible infractions of FINRA rules.
Severance decided not to cooperate with FINRA personnel. Specifically, FINRA received a phone call from Severance on November 11, 2019 in which it was communicated that although the request for his documentation and information had been received, there would be nothing furnished to FINRA by Severance in response. FINRA found Severance’s conduct violative of FINRA Rules 2010 and 8210.
This is not the first time that Severance has been subject of a disciplinary action and sanctioned by a securities regulator. Specifically, Severance has been fined $5,000.00 by Minnesota Department of Commerce in 2019 supported by allegations that he engaged in inappropriate and irresponsible transactions and violated a fiduciary duty that he owed to an elderly resident of the State of Minnesota. Also, Severance was fined $2,500.00 by Minnesota Department of Commerce founded on accusations that he mismarked customer order tickets and omitted information in regard to the modification of a customer’s investment portfolio.
Severance was employed by LPL Financial from November 29, 2017 to January 2, 2019.