Mark Brian Degner, of Shady Cove, Oregon, submitted a Letter of Acceptance, Waiver, and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for negligently making material misstatements regarding the sale of 20-year CDs to elderly customers. According to FINRA, the customers suffered losses of approximately $75,000 as a result of investing in the misrepresented CDs.
FINRA found that, while employed by LPL Financial LLC, Mark Degner misrepresented 20-year interest rate-linked CDs to his customers by stating that the CDs were not subject to any survivor benefit limitations when, in fact, they were. The survivor benefits of the CDs were subject to a limitation that restricted the amount of early redemptions among purchasers. While the issuer’s disclosure statement disclosed this information, Mr. Degner failed to review this information and recommended that his customers purchase CDs totaling $685,000. As a result of the survivor benefit limitation, the estates of two of the customers were not able to fully redeem their CDs and suffered losses of approximately $75,000. Without admitting or denying FINRA’s findings, Mark Degner was fined $7,500 and suspended for 20 business days. The suspension was in effect from March 5, 2018 through April 2, 2018.
Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers like LPL Financial to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm’s own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s misrepresentations and/or other stockbroker misconduct can file a claim to recover damages against broker dealers, like LPL Financial, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your LPL Financial investment account due to your stockbroker’s misrepresentations? 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 LPL Financial stockbrokers for unsuitable recommendations, misrepresentations, and/or other stockbroker 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 40 years, 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.