SEC Bars LPL Stockbroker For Fraud
Thomas Edward Andrews of Salt Lake City Utah a former LPL Financial LLC registered representative has been barred by Securities and Exchange Commission (SEC) in all capacities according to an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 containing findings that Andrews committed securities fraud. In the Matter of Thomas Edward Andrews Administrative Proceeding File No. 3-18354 (Feb. 1, 2018).
The Order first revealed that Andrews pleaded guilty to securities fraud; conduct violative of 15 U.S.C. § 78(j)(b), 15 U.SC. § 78ff and 17 C.F.R. § 240.10b-5. United States v. Thomas Edward Andrews, Case No. 2:16cr00211-DS (D. Utah Dec. 15, 2016). Moreover, a criminal judgment against Andrews was entered on December 15, 2016 wherein Andrews was sentenced to over nine years in prison and ordered to pay $8,384,253.00 in restitution.
Prior to SEC’s Order, Andrews consented to being disgorged of $8,300,000.00 and permanently enjoined from committing violations of Securities Act of 1934 Sections 10(b) and 15(a), SEC Rule 10b-5 and Securities Act of 1933 Section 17(a). Securities and Exchange Commission v. Thomas Edward Andrews, Case No. 2:17-cv-00256-DN (D. Utah Jan. 29, 2018). Andrews reportedly engaged in a fraudulent scheme in the offer and sale of securities which he classified as Lincoln and The Jackson Trust products. Those transactions were apparently effected over a five-year period away from LPL Financial LLC.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Andrews is referenced in four customer initiated investment related disputes pertaining to allegations of Andrews’ wrongdoing during the time that he was registered with LPL Financial. Specifically, on November 20, 2015, a customer filed an investment related civil action involving Andrews’ activities in which customers collectively sought $8,000,000.00 in damages based upon accusations that Andrews violated securities laws; breached his contractual and fiduciary obligations to the customers; made misrepresentations about investments; misappropriated customers’ funds; mismanaged customers’ accounts and committed fraud. Civil Action No. 150600025 (Nov. 20, 2015). Andrews reportedly caused customers to provide him funds for the purpose of investing in fixed and variable annuities, but Andrews never invested the customers’ funds despite providing customers with phony documentation indicating otherwise.
On January 5, 2016, another customer filed an investment related complaint regarding Andrews’ conduct in which the customer requested at least $5,000.00 in damages supported by allegations that Andrews sold away from LPL Financial. Additionally, on October 20, 2016, a customer filed an investment related complaint concerning Andrews’ activities where the customer requested more than $5,000.00 in damages founded on accusations that Andrews engaged in unapproved private securities transactions. Further, customers collectively filed an investment related arbitration claim involving Andrews’ conduct in which the customers requested a total of 9,122,600.00 in damages founded on allegations that Andrews advised customers to liquidate their existing annuity contracts and place assets in different annuity contracts that, unbeknownst to customers, did not exist. FINRA Arbitration No. 17-02267 (Sept. 6, 2017).
Andrews was discharged from LPL Financial LLC on October 7, 2015.
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