LPL Financial Sanctioned by Regulators in Connection with Its Sales of Variable Annuities

Cleveland investor rights attorneyLPL Financial, an investment firm, was charged with failing to retain appropriate books and records which documented variable annuity exchanges, or 1035 exchanges, as per the firm’s BrokerCheck profile. They were ordered to pay a $2 million fine as well as $820,000 in restitution.

The Peiffer Rosca law firm’s securities practice attorneys Alan Rosca and Joe Peiffer are investigating the matter on behalf of investors.

LPL Financial Has Allegedly Inadequate Supervisory System

LPL Financial Holdings Inc. had a previously unreported settlement with the Illinois Securities Department which influenced its flat second quarter earnings.

LPL Financial was not successful in enforcing its supervisory system and procedures regarding the documentation of the variable annuity exchange activities of particular salespersons, as specified in the BrokerCheck report.

LPL Financial Cooperates with Regulators to Reach Settlement

LPL Financial has its sales of the investment products, such as nontraded real estate investment trusts, reviewed by state securities regulators. As of February of 2013, a settlement between LPL Financial and the Commonwealth of Massachusetts has been agreed upon. LPL Financial has agreed to pay a minimum of $2 million in restitution and $500,000 in fines due to the sale of nontraded REITs.

Investor Right Attorneys Investigating LPL Financial

The Peiffer Rosca 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 investors with the recovery of any losses they may have suffered in connection with LPL Financial’s 1035 exchanges (variable annuity exchanges). 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 Rosca, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1157 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.