Gary J. Chackman Barred From Securities Industry Due to Alleged Unsuitable Recommendations and Document Forgery
Gary J. Chackman was barred from the securities industry by the Financial Industry Regulatory Authority (“FINRA”) in connection with claims that Chackman recommended unsuitable transactions and falsified documents.
Chackman recommended and effected unsuitable transactions in the accounts of some of his LPL Financial, Inc. customers by over-concentrating his customers’ assets in real estate investment trusts (“REITs”) and other illiquid securities, according to FINRA.
Chackman recommended REITs and other alternative investments to at least eight of his LPL Financial customers from July 2009 to February 2012, according to FINRA. This led to his customers having large percentages of their wealth tied up in illiquid investments.
Generally, illiquid investments are unsuitable investments for investors who need access to their investments within a short period after making their investment. Some REITs are illiquid because a public trading market is unavailable. Illiquid REITs are unsuitable for many investors who require that their investment portfolio contain primarily liquid investments.
Chackman regularly misidentified his customers’ purported liquid net worth to evade LPL Financial’s limitation on the concentration of alternative investments in customers’ accounts, according to FINRA. Chackman would make these misrepresentations on his firm’s alternative investment form by stating that a customer’s liquid net worth was much larger than the customer’s actual liquid net worth, according to FINRA.
As a result of Checkman’s misrepresentations on those forms, his customers’ concentration in alternative investments, gauged as a percentage of their purported liquid net worth, remained below LPL Financial’s limitations, according to FINRA.
Chackman consented to being barred from the securities industry without denying or admitting FINRA’s factual findings.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses in connection with their financial professionals’ recommendations of unsuitable investments. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.