LPL Financial will pay up to $26 million to settle charges that its representatives sold unregistered securities to clients over the past 12 years. This includes the payment not only of a certain amount for certain unregistered securities, it also includes a payment of 3% simple interest on the investments.
The settlement covers a variety of unregistered securities, including private placements and certain municipal bonds. There are also certain stocks, corporate bonds and structured investments that may be covered.
Securities can only be legally sold to investors if the securities are either registered or qualify to be exempt from registration. Otherwise, the sale is in violation of not only federal securities laws, but also state securities laws.
LPL agreed to the settlement after an investigation by the North American Securities Administrators Association (NASAA). The NASAA found that its customers were sold unregistered and non-exempt securities since October 2006, according to an announcement.
LPL Financial, the largest U.S. independent broker-dealer by revenue, said it will pay a $499,000 fine to each of the 52 U.S. states and territories if they choose to participate in the deal. California has chosen not to participate, LPL said.
Investors will likely be faced with a decision on whether or not to enter into the agreement or pursue and action of their own. We assist investors in the claim evaluation and assist investors to maximize their recoveries.