LPL Financial LLC Named In Customer Churning Claim

Thomas Edward Andrews, of Salt Lake City, Utah, a barred stockbroker formerly registered with LPL Financial LLC, has been named in a customer initiated investment related written complaint on October 20, 2016, in which forty-four customers have collectively requested $10,504,799.00 in damages based upon allegations that Andrews churned the customers’ accounts, negligently managed the customers’ investments, converted customers’ funds, breached his fiduciary duties, violated state securities laws and FINRA rules, and sold securities to the customers outside the auspices of LPL Financial, LLC.
The customers alleged that Andrews made specious guarantees to customers, and instructed customers to liquidate their existing retirement accounts and annuities contracts prematurely in order to make investments into annuity contracts which were not factually in existence. Customers additionally alleged that LPL Financial, LLC failed to supervise Andrews’ activities in this regard.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Andrews has been identified in two additional customer initiated investment related disputes containing allegations of Andrews’ misconduct while employed with LPL Financial, LLC. In particular, on November 20, 2015, customers filed an investment related civil lawsuit involving Andrews’ conduct, in which the customers requested $8,000,000.00 in damages based upon allegations that Andrews negligently handled the customers’ investment accounts, breached his contractual and fiduciary duties, made misrepresentations to the customers concerning investments, mismanaged the customers’ portfolios, borrowed funds without authorization, misappropriated customers’ funds, and committed fraud in connection with fixed and variable annuity transactions.
Customers alleged that trust instruments were formed through Andrews, where customers were then provided with application forms for investments in annuities. The customers purportedly made funds payable to the trusts, where their assets were deposited in the trust investments instead of the annuities. The customers claimed that Andrews provided them with fake account statements which reflected monies invested in the annuities.
Further, on January 5, 2016, another customer filed an investment related written complaint regarding Andrews’s activities based upon allegations that Andrews sold securities outside the auspices of LPL Financial, LLC.
On October 7, 2015, LPL Financial LLC terminated Andrews based upon allegations that Andrews misappropriated customer funds. Andrews has been permanently barred from associating with any FINRA member in any capacity based upon allegations that he failed to provide FINRA with a response to FINRA’s information request. Case No. 2015047236301 (Feb. 12, 2016).