A Financial Industry Regulatory Authority (FINRA) arbitration panel awarded $462,000 to former clients of Charles Fackrell, a former LPL broker serving prison time currently. Fackrell pleaded guilty to a $1.4 million ponzi scheme, and has many pending and future claims against the firm because of his misconduct. The bank may face more than 50 clients over charges against Fackrell. Total penalties, restitution, arbitration awards and settlements relating to the broker have reached $1.9 million. Fackrell will pay restitution of $819,918 to the victims, but LPL may face having to pay more than $1 million. He allegedly stole more than $700,000 of his clients’ $1.4 million from 2012 until 2014, telling them that he would invest their money in gold and other precious metals, but, instead spent most of the money on personal items. He was sentenced to five years in prison in December 2016 after he pleaded guilty to securities fraud, and after he spent almost half the investments he controlled between that time period. He allegedly suffers from bipolar disorder and post traumatic stress disorders and major depressive disorder. State regulators in North Carolina and Washington have sanctioned LPL over its supervision of Fackrell. Former clients to date have won more than $276,000 from LPL in arbitration.
Mr. Fackrell was previously registered with Morgan Stanley in Winston-Salem, North Carolina from August 2007 until February 2008, SunTrust Investment Services in Yadkinville, North Carolina from July 2008 until December 2009, Wells Fargo in High Point, North Carolina from December 2009 until June 2010 and LPL in Yadkinville from June 2010 until December 2014. He has 10 customer disputes against him, three of which are pending, alleging unsuitability and poor performance of investments, misrepresentation, breach of fiduciary duties, failure to supervise, violation of the North Carolina Securities Act, breach of contract, and fraud, among other things. He has two criminal charges against him, both of which are pending. According to his online, public FINRA BrokerCheck report, he has been permanently barred from the industry.
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