Zamansky & Associates LLC Announces that it is Investigating LPL Financial Advisor Over Alleged Email Violations

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Zamansky & Associates LLC announces that it is investigating LPL Financial LLC (“LPL”), the large independent brokerage firm, over alleged email violations and the possible harm to its brokerage customers as reported by FINRA, and over its sales of nonpublic REITs.

Zamansky & Associates LLC announces that it is investigating LPL Financial LLC (“LPL”), the large independent brokerage firm, over alleged email violations and the possible harm to its brokerage customers.

On May 21, 2013 the Financial Industry Regulatory Authority(“FINRA”) announced that it fined LPL $7.5 million for 35 separate, significant email system failures, which prevented LPL from accessing hundreds of millions of emails and reviewing tens of millions of other emails. Additionally, in a Letter Acceptance, Waiver and Consent (“AWC”) released with the announcement, FINRA alleged that LPL made material misstatements during its investigation of the firm's email failures. According to the AWC, LPL was also ordered to establish a $1.5 million fund to compensate brokerage customer claimants potentially affected by its failure to produce email. The case is FINRA No. 2012032218001.

Zamansky is investigating whether LPL’s alleged email violations have caused its brokerage customers or claimants harm. “The integrity of Wall Street’s recordkeeping practices directly impacts on the public’s trust and integrity of the securities markets,” Zamansky states. “The securities markets rely on trust by its participants -- the investors, the brokerage firms and clearing firms -- all must trust in the integrity of the systems, and the recordkeeping if any dispute arises,” Zamansky says.

This is not LPL’s first regulatory problem. On February 6, 2013, Reuters reported that LPL paid a $2.5 million fine to settle charges by Massachusetts’ Securities Regulators for failing to supervise sales of nonpublic real estate investment trusts (“REITs”) to its customers in that state. LPL’s lack of supervision related to the suitability of REITs for its investors, Reuters reported. “Any investor who purchased a REIT through LPL should have the investment reviewed for suitability,” according to Zamansky.

What Investors Can Do

If you a brokerage customer of LPL who was affected by any alleged email violation or who invested in a REIT, you may email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.

About Zamansky & Associates LLC

Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and class action litigation. Our attorneys represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.

Contacts

Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414

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Jacob Zamansky
Zamansky & Associates LLC
212 742-1414
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