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Robert Rex
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This blog is written by Robert H. Rex, Esq. who is a securities attorney and a passionate advocate for investors rights. With over 30 years of legal experience, 25 of which have dealt almost exclusively with the recovery of stockmarket and investment losses for mostly elderly clients, he and his... More
My company:
Rex Securities Law
My blog:
Rex Investment Loss Recovery Blog
  • LPL Fined $9 Million For Making Misstatements To FINRA And Inadequate Email System 0 comments
    May 21, 2013 3:19 PM

    On May 21, 2013, the Financial Regulatory Authority (FINRA) announced a record $9 million dollar fine has been assessed against LPL Financial significant failures in its email system which prevented access to hundreds of millions of emails.

    FINRA provided the following examples of email failures:

    • Over a four-year period, LPL failed to supervise 28 million "doing business as" (NYSEARCA:DBA) emails sent and received by thousands of representatives who were operating as independent contractors.
    • LPL failed to maintain access to hundreds of millions of emails during a transition to a less expensive email archive, and 80 million of those emails became corrupted.
    • For seven years, LPL failed to keep and review 3.5 million Bloomberg messages.
    • LPL failed to archive emails sent to customers through third-party email-based advertising platforms.

    To make matters worse LPL made material misstatements to FINRA during the investigation of the email problem. FINRA found that LPL likely failed to provide emails to certain arbitration claimants and private litigants and is required to notify eligible claimants and deposit $1.5 million of the fine in a fund to pay customer claimants for its potential discovery failures.

    Rex Securities Law has been investigating the sales practices of LPL Financial, including its sale of non-traded REITs to investors, for more than a year and currently is representing a number of LPL clients who are seeking recovery of investment losses. If you have questions about losses in your LPL Financial account, contact us for more information.

    Nationwide representation.

    Free consultation.

    Rex Securities Law

    561 391 1900

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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