FINRA Fines Former LPL, Woodbury Associate Who Accepted Customer’s Presents|ThinkAdvisor
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The Financial Market Regulatory Authority fined an ex-LPL Financial and ex-Woodbury Financial broker $10,000, claiming she broke several LPL rules concerning relationships with clients, breaching FINRA Guideline 2010 governing requirements of industrial honor and concepts of trade.
Specifically, former broker and RIA Jodie Lane accepted gifts worth more than $100 from a customer, served as power of attorney for the same customer, was designated as a recipient on the client’s account, and had check writing authority over the customer’s account– all without receiving LPL approval, FINRA declared.
On top of all that, Lane likewise mentioned in 3 yearly compliance surveys that she did not have any customer relationships such as a power of attorney to report nor had she received presents valued at more than $100 from any client, which “was not real,” according to FINRA.
Without confessing or rejecting FINRA’s findings, Lane signed a letter of approval, waiver and approval Tuesday in which she consented to pay the fine and be suspended for 4 months from association with any FINRA member in any capability. FINRA accepted the letter Wednesday.
However, Lane is no longer an RIA or signed up broker, according to FINRA’s BrokerCheck site. She willingly resigned from LPL in July 2017, the AWC letter stated.
The firm filed a Type U5 ending her registration on Aug. 8, 2017, and after that modified the Kind U5 on Oct. 24, 2017, specifying it began an evaluation of Lane tied to her actions with the client, according to FINRA. Lane joined Woodbury in 2017 however left this year for a reason unspecified in the AWC letter.
LPL decreased to comment Thursday. Woodbury parent Consultant Group and Jonathan Hackbarth, an attorney with Quarles & Brady– the law office representing Lane in the dispute– did not immediately react to demands for remark.
A client determined in the letter just as “NL” was Lane’s long-time client– as well as Lane’s “second cousin as soon as removed.” The customer followed Lane to LPL when the broker signed up with the company in 2011, according to FINRA.
Between May 2011 and July 2017, Lane “prevented” LPL’s composed supervisory treatments with respect to the accounts of NL, who passed away in May 2017, according to the AWC letter.
In April 2011, NL gave Lane 3 powers of attorney over NL’s financial affairs: a health care POA, a basic monetary POA and a POA over NL’s outside bank account, that included the power to withdraw funds from and compose checks on NL’s bank account, according to FINRA.
In addition, contrary to LPL’s prohibition on consultants receiving presents, Lane accepted $154,299 in presents from NL between May 2015 and May 2017 by transferring the funds from NL’s inspecting account to Lane’s accounts.
In addition, NL designated Lane as the transfer on death beneficiary for 2 of NL’s brokerage accounts in 2016, according to FINRA, keeping in mind that, at the time, the overall worth of the accounts was about $768,000.
Lane knew that classification, however did not alert LPL as needed by the firm’s procedures, FINRA declared. Lane also did not designate the accounts as employee-related and, when NL died, Lane acquired more than $715,000, according to FINRA.
As part of an evident separate examination, on Dec. 10, 2019, FINRA made an initial decision to suggest disciplinary action be taken versus Lane over possible infractions that consisted of conducting service outside her firm without notifying it first, according to a comprehensive report on the BrokerCheck site.
This separate investigation is still pending, according to FINRA.