Lincoln Financial Fined for Penny Stock Failures

Lincoln Financial fined by FINRA.

In February, 2016, the Financial Industry Regulatory Authority (“FINRA”) announced that Lincoln Financial Advisors of Ft. Wayne, Indiana submitted an acceptance, waiver and consent letter regarding its failure to effectively implement a reasonable penny stock supervisory system designed to achieve compliance with the securities laws. In agreeing to the AWC, the firm was fined $90,000.

FINRA’s allegations against Lincoln Financial Advisors concerned a registered rep who made a series of penny stock transactions in amounts under $5,000.  By structuring the transactions in such small increments, the rep was able to evade detection by management. FINRA’s allegations concerned the firm’s failure to act on the numerous penny stock transactions submitted by the rep, and the failure to put the pieces together to see that the rep was structuring the transactions to evade detection by the firm.

Registration and disciplinary history

In order to lawfully sell investments to the public, a firm must either be registered or exempt from registration.  Lincoln Financial Advisors is an Indiana corporation formed in 1968 and registered with FINRA, the SEC and in 52 states and territories.

According to FINRA’s CRD disclosure report, Lincoln Financial Advisors has been the subject of six customer complaints and fourteen regulatory investigations.

The Law Office of David Liebrader practices exclusively in the field of investment loss recovery.  For the past 23 years, we have dedicated our law practice to assisting investors who have been victims of investment fraud via fraudulent and unsuitable investment transactions.  During that time we have recovered money for over one thousand individuals, pension plans, trusts and companies.  The recoveries we have obtained via judgments, awards and settlements on behalf of our clients exceed $40,000,000.

When investors contact our firm they can expect prompt attention, and a detailed analysis of their issues.  Typical claims that we are asked to review  involve “unsuitability (where a financial advisor makes investment recommendations that are inconsistent with a customer’s investment objectives), claims for “churning” (where a broker enters into an excessive number of trades for the purpose of generating commissions), claims involving illiquid investments such as private placements (I.e., real estate investment trusts, limited partnerships, equipment leasing and oil and gas drilling programs) as well as claims for violations of state securities laws, which often provide investors remedies like attorney’s fees and interest, if they are successful on the claim.

If you suspect that you have been the victim of investment fraud, or had a financial advisor recommend unsuitable investments to you, call us today for a free, confidential consultation at (702) 380-3131.

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