Donald George Padilla of Alhambra California a stockbroker formerly employed by LPL Financial LLC has been fined $10,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that Padilla used unauthorized correspondence channels with customers and had caused LPL Financial to maintain false records and books. Letter of Acceptance Waiver and Consent No. 2015048141902 (June 2, 2020).
According to the AWC, Padilla used secretive means to correspond with customers about securities related business. FINRA stated that portfolio recommendations and fee summaries were discussed with customers without the securities broker dealer having any way to monitor his conversations. Padilla was also administered compliance questionnaires from LPL in which he lied about the nature of his correspondence with customers. FINRA determined that Padilla’s conduct was violative of FINRA Rules 2010 and 4511.
FINRA Public Disclosure reveals that Padilla has been identified in three customer initiated investment related disputes concerning accusations of his misconduct when the stockbroker was employed by Kestra Investment Services and WM Financial Services. He is the subject of a customer initiated investment related written complaint where the customer sought unspecified damages based upon accusations of the stockbroker’s failure to inform the customer about the terms and conditions of a variable annuity that he sold during the time that he was associated with WM Financial Services Inc.
On August 5, 2019, a customer filed an investment related complaint involving Padilla’s conduct in which the customer requested $154,700.00 in damages based upon allegations of an annuity being sold by Padilla to a Kestra Investment Services customer who suffered from diminished capacity. On August 30, 2019, another customer filed an investment related complaint involving Padilla’s conduct in which the customer requested $100,000.00 in damages based upon allegations of Padilla improperly selling a variable annuity to as customer during the time that he was associated with Kestra Investment Services.
Padilla was terminated from LPL Financial founded on accusations of him concealing information from the securities broker dealer as it pertained to his communications with customers. He was terminated from subsequent securities broker dealer employer Kestra Investment Services founded on accusations of his failure to comply with policies on marketing and correspondence. Between April 16, 2018 and September 20, 2018, the stockbroker was employed by National Securities Corporation.
