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. Continue reading →