Barry Buchholz is an LPL broker. He accepted a suspension from the Financial Industry Regulatory Authority (FINRA) over allegations of unauthorized trading in multiple accounts. Additional terms of the regulatory settlement are that Buchholz pay a fine and repay $7,480 of commissions received.
The underlying charges stem from allegations of unauthorized trading. In particular, the allegations are that from September to October 2023, Buchholz placed 11 unauthorized mutual fund trades. The principal value of the trades was $590,000. The trades generated in excess of $16,000 in commissions.
The investors were four children of one of Buchholz’ clients who had recently passed. As such, the children each opened a brokerage account at LPL with their respective portions of their father’s estate. The allegations are that Buchholz made unauthorized mutual fund transactions in each of the children’s accounts.
Additionally, Buchholz has a long history of customer disputes and lawsuits. These disputes are not limited to unauthorized transactions but also include the sale of unsuitable securities and insurance products.
FINRA rules require every trade to be authorized. An investor must give written authority to exercise discretion in an investor’s account. Absent such authority, the broker must obtain investor approval just prior to each trade. FINRA sets rules for securities dealers under the oversight of the Securities and Exchange Commission (SEC). FINRA Rule 2111 also requires that every trade recommendation be consistent with the objectives and risk tolerance of the investor.
Buchholz did not admit wrongdoing in the settlement.
Jeffrey Pederson handles cases concerning misdeeds by securities brokers. Please call for a free and confidential initial consultation.
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