Robert Charles Mangold, a former registered representative with Financial Network Investment Corporation (Financial Network) and LPL Financial LLC (LPL) submitted a letter of acceptance, waiver, and consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) sanction and findings that he solicited and received $56,000 in loans from two customers.
Robert Mangold, of Mt. Laurel, Florida, allegedly borrowed $18,000 from a Financial Network customer and $38,000 from an LPL customer. Both firms prohibited registered representatives from borrowing money from customers who were not immediate family members. FINRA’s findings stated that Mr. Mangold made a partial repayment of both loans, but was granted a discharge in bankruptcy on June 6, 2014 for the balance. Robert Mangold was suspended from association with any FINRA member in any capacity for 60 days. The suspension was in effect from November 3, 2014 through January 1, 2015.
Stockbrokers and other financial industry professionals have been known to engage in many types of fraudulent and unlawful misconduct, including soliciting unauthorized loans from customers, which violate industry rules and procedures. In order to protect investors from broker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these supervisory rules requires employees to be monitored to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors fail to establish and implement these protective measures, they may be held liable to investors for losses flowing from the broker’s misconduct. As a result, investors who have suffered losses stemming from a broker or financial advisor’s unlawful or unauthorized misconduct can bring forth claims to recover damages against brokerage firms like Financial Network Investment Corporation and LPL Financial LLC, which have a duty to supervise its employees in order to prevent broker misconduct.
Have you suffered losses in your Financial Network or LPL Financial investment account due to your broker’s unauthorized and/or fraudulent misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against brokers and registered representatives for unauthorized loan solicitation, unsuitable recommendations, and other types of broker misconduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at firstname.lastname@example.org, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.