The Securities Arbitration Law Firm of Klayman & Toskes Investigates LPL Financial & VALIC Financial Advisors Relating to the...
November 20 2014 - 4:18PM
Business Wire
The Securities Arbitration Law Firm of Klayman & Toskes,
P.A., www.nasd-law.com, announced today that it is investigating
LPL Financial (“LPL”) (NasdaqGS: LPLA) and VALIC Financial Advisors
(“VALIC”), a part of American International Group (NYSE: AIG),
relating to the supervision of Jodie Linn Miller (“Miller”) (CRD
No. 4772684) and the sale of Tri-Med Corporation (“Tri-Med”) Notes.
On November 12, 2014, Miller entered into a Letter of Acceptance,
Waiver and Consent (“AWC”) with the Financial Industry Regulatory
Authority (“FINRA”), in connection with allegations of selling away
securities in Tri-Med. Selling away occurs when a broker sells
securities products to her customers without prior approval from
her broker-dealer. In the AWC, Miller consented to a suspension
from association with any FINRA member for 18 months, and a fine of
$53,225, which includes disgorgement in the amount of $38,225, plus
interest.
According to the AWC, “During 2012, Miller participated in
private sales of $764,500 worth of Tri-Med Corporation (“Tri-Med”)
securities for which she earned commissions of approximately
$38,225. She did not notify VALIC or LPL of her participation, and
did not obtain approval from either firm to participate, in the
private security sales. She therefore violated NASD Rule 3040 and
FINRA Rule 2010.” The AWC adds that “Tri-Med’s business involved
financing account receivables for personal injury claims. Tri-Med
purchased from medical providers, at discounted rates, outstanding
receivables relating to personal injury claims, with the exception
that insurers would pay the entire receivable once the claim was
resolved through litigation or settlement. To fund its purchases,
Tri-Med sold interest-bearing notes collateralized by Letters of
Protection (“LOP”). The LOPs allegedly assured that the receivable
would be repaid from any proceeds obtained as a result of the
settlement or litigation.”
Finally, the AWC states, “In March 2014, Florida’s Office of
Financial Regulation (“OFR”) sued Tri-Med and five of its officers,
alleging that they were selling unregistered securities and
operating a Ponzi scheme. Among other things, medical providers
from whom Tri-Med supposedly purchased claims stated that they had
never done business with Tri-Med. OFR obtained a temporary
restraining order against Tri-Med and the court has appointed a
receiver to marshal the company’s assets.”
During the time period at issue, Miller was registered with
FINRA broker-dealers LPL and VALIC. Under FINRA Rules, LPL and
VALIC were obligated to properly supervise the activities of Miller
during the time she was registered with the brokerage firms.
Accordingly, LPL and/or VALIC may be liable for failing to
supervise Miller’s activities while registered at the respective
brokerage firms.
If you have information relating to this investigation, please
contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of
Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web
at www.nasd-law.com.
Klayman & Toskes, P.A.Steven D. Toskes, Esquire or Jahan K.
Manasseh, Esquire, 888-997-9956
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