Charla Cynthia Kabana of Huntington Beach California a stockbroker formerly employed by LPL Financial LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to comply with FINRA’s investigation into her possible variable annuity sales practice violations. Letter of Acceptance Waiver and Consent No. 2016050951001 (Aug. 21, 2018).
According to the AWC, Kabana was terminated from LPL Financial LLC on July 11, 2016 founded on allegations that Kabana’s sales practices with variable annuities and communications with the firm’s compliance personnel raised concerns by the company about Kabana’s possible misconduct.
Kabana then became subject of a FINRA investigation into her sales practices. Apparently, FINRA provided a letter to Kabana’s counsel on June 15, 2018, calling on Kabana to provide information and documentation including checks, credit card statements, and bank account statements. FINRA required that the documents and information be provided to the regulator by June 29, 2018. Kabana’s counsel contacted FINRA on July 9, 2018 stating that Kabana would at no point be providing the information and documentation requested of her.
The AWC additionally stated that on July 5, 2018, Kabana was sent a letter from FINRA under Rule 8210 which requested for Kabana to testify on July 26, 2018. Kabana’s counsel e-mailed FINRA personnel on July 8, 2018 to indicate that FINRA’s request had been received by Kabana but that Kabana would be making no appearance to testify for FINRA.
FINRA was ultimately deprived of Kabana’s information and documentation, which was requested by FINRA to investigate if Kabana improperly engaged in annuity transactions with customers. FINRA found Kabana’s failure to provide that information and documentation to be violative of FINRA Rules 2010 and 8210. She was separately found to have violated FINRA Rules 2010 and 8210 because of her failure to testify.
After Kabana was terminated from LPL Financial LLC, she was employed by Sagepoint Financial, Inc. between August 25, 2016 and August 2, 2018.
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