Marc Halan Baldinger, a former broker with the Stuart, Florida branch of LPL Financial LLC (LPL Financial), 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) findings that he participated in private securities transactions without the necessary written approval from his employer.
FINRA found that Marc Baldinger assisted 20 clients, who invested a combined total of more than $12 million in Government National Mortgage Association Interest Only bonds (GNMA I/Os), in establishing accounts with other brokerage firms. According to FINRA, Mr. Baldinger received approximately $233,427 in compensation for his role in the sales of the GNMA I/Os; and all of these securities transactions were without the approval of his member firm, LPL Financial. FINRA also found that Mr. Baldinger failed to disclose his position as a managing partner of two limited liability companies, that he failed to disclose that he had opened an account with a broker dealer that was not LPL, and that he also failed to disclose to the non-LPL broker dealer that he was a registered representative.
Consequently, Marc Baldinger, of Jensen Beach, Florida was assessed a deferred fine of $10,000, ordered to pay $233,000 plus interest in disgorgement of selling compensation, and suspended from association with any FINRA member in any capacity for 18 months. The suspension is in effect from November 17, 2014 through May 16, 2016.
Stockbrokers, financial advisors, and other financial industry professionals have been known to engage in many types of misconduct which violate industry rules and procedures. In order to protect investors from such misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system. The implementation of the rules requires supervisors to monitor employees to ensure compliance 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 investment account holders for losses flowing from the employees’ misconduct. As a result, investors who have suffered losses stemming from unauthorized securities transactions or other misconduct by their broker or registered representative can bring forth claims to recover damages against broker dealers like LPL Financial, which have a duty to supervise its employees in order to prevent broker misconduct.
Have you suffered losses in your LPL Financial investment account due to Marc Baldinger’s or another registered representative or stockbroker’s unauthorized securities transactions or other 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 financial professionals for unauthorized and/or fraudulent 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 email@example.com, 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.