Larry Allen Stapp of Midland Texas is a stockbroker formerly registered with LPL Financial LLC who has been fined ten thousand dollars and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he entered into an unauthorized loan arrangement with a customer of the firm. Letter of Acceptance Waiver and Consent No. 2016049399401 (Dec. 7 2016).
According to the AWC, a total of $200,000.00 had been lent to Stapp by BM – an eighty-one-year-old customer of LPL Financial. The AWC stated that a promissory note was executed in which Stapp was required to pay BM 4.2 percent interest on an annual basis, with full repayment in April of 2015. Apparently, Stapp failed to repay the customer when he was obligated to. The AWC stated that written procedures and policies of the firm disallowed Stapp from entering into borrowing arrangements with customers unless in circumstances that were not present in Stapp’s case. FINRA found that Stapp’s conduct was violative of FINRA Rule 2010 and 3240.
The AWC also revealed that Stapp completed the firm’s compliance questionnaires for November of 2012, July of 2013 and July of 2014, where he falsely represented on the questionnaires that he never loaned or borrowed securities or money from another entity or individual. FINRA found that Stapp’s representations were false based upon his borrowing of BM’s $200,000.00. Apparently, Stapp also falsely represented to the firm that BM was not a customer when the firm questioned him about his borrowing arrangement in January of 2016. Consequently, FINRA found Stapp’s failure to be forthcoming as conduct violative of FINRA Rule 2010.
Stapp has been terminated from LPL Financial LLC on March 4, 2016 based upon allegations that he engaged in a borrowing arrangement with a customer in violation of LPL Financial LLC’s policies.
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