Former LPL Financial agent Mark Lamkin of Louisville, Kentucky is involved in legal disputes with two customer who allege serious sales-practice violations. One customer alleges “excessive selling of annuities, misrepresenting or failing to disclose material facts, unsuitability of products and alteration of account profiles.” The other customer alleges that Lamkin misrepresented certain features of an annuity product.
Lamkin was discharged from LPL last year after the firm received allegations that Lamkin had engaged in selling away of unapproved investments, undisclosed outside business activities, and the solicitation and receipt of loans from LPL customers.
Financial advisors have a duty to recommend suitable investments and investment strategies to their clients. A recommendation is only suitable if it comports with the client’s investment objectives, risk tolerance, investment experience, investment time horizon, liquidity needs, and income needs. Together these considerations form the investor’s unique “investment profile.” The duty to recommend suitable investments cannot be disclaimed through risk disclosures or waivers.
There are a multitude of state and federal statutes that make it unlawful to mislead and defraud investors in connection with the purchase or sale of securities. The best known of these laws is Section 10(b) of the Securities Exchange Act of 1934, which is a federal statute. Each of the 50 States has its own set of securities laws, known as “blue sky” laws. Many States have modeled their blue sky laws on the Uniform Securities Act, which contains a variety of different civil liability provisions.
Annuity “twisting” or “churning” occurs when a broker or insurance agent advises an annuity owner to trade one annuity policy for another one even though the transaction is not in the customer’s best economic interests. The transaction can lead to hefty surrender charges, an increase in the surrender period, a loss of earned benefits, and large commissions for the selling agent.
If you have suffered investment losses as a result of the malpractice or misconduct of Mark Lamkin and/or LPL Financial, our experienced team of securities attorneys may be able to assist you in recovering some or all of your losses. Call us toll-free at 888-607-4819 for a free consultation or email us through our “Contact” page to schedule a free consultation.