Ex-LPL Financial Supervisor Settles with FINRA
Peter Neuberg, a former LPL Financial (LPLA) supervisor and broker, will pay a $15K fine and serve a six-month suspension to settle claims accusing him of not reasonably supervising a registered representative. According to an enforcement document signed by the Financial Industry Regulatory Authority, Neuberg stopped looking at paperwork that the representative prepared. This made it possible for the broker to modify documents about customer accounts and reuse signatures from forms that had been completed. Neuberg is settling without admitting or denying FINRA’s findings.
The purported supervisory failures would have taken place from September ’11 to June ’12. The broker, whom Neuberg supervised, falsified documents to expedite transactions to accommodate certain customers. Neuberg is accused of not properly training the broker.
Ex-GL Capital Partners CEO Gets Nine Years in Prison
In other news, Daniel Thibeault, the former CEO of GL Capital Partners, is sentenced to nine years behind bars for misappropriating at least $15M. He must pay $15.3M in restitution for the criminal charges. He also is contending with civil charges brought by the Securities and Exchange Commission.
Thibeault pleaded guilty to wire fraud, securities fraud, obstruction of justice, and aggravated identity theft. He and the firm were investment advisers to the GL Beyond Income Fund (GLBFX), which is where they misappropriated the money.
Investors thought their money was going toward purchasing or making consumer loans on which they would make money off the interest. Instead, fake loans were reported as fund assets.
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Former LPL broker suspended for supervisory failure, Finra says, InvestmentNews, June 21, 2016
Ex-Fund CEO Gets 9 Years For Fraud, Obstruction Of SEC, Law360, June 20, 2016
Read the SEC Complaint (PDF)