Paul George Liebzeit, of Pittsburgh, Pennsylvania, a stockbroker with LPL Financial, LLC, was fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he engaged in unauthorized private securities transactions. Letter of Acceptance, Waiver and Consent, No. 2014043011201 (Aug 11, 2016).
According to the AWC, while Liebzeit was a registered stockbroker with LPL Financial, LLC, he had also served in the capacity as an investment advisory representative, in which he provided asset management services on behalf of a registered investment advisory. Apparently, clients of the registered investment advisory had received consultations from Liebzeit regarding prospective investments.
Apparently, Liebzeit made investment recommendations to such customers in a fund consisting of hedge funds, which was an investment offered outside the auspices of LPL Financial LLC. Additionally, LPL Financial did not approve such investment for sale via the firm.
The AWC also noted that from January 2014 through February of 2014, Liebzeit had assisted customers in purchasing investments. Here, Liebzeit reportedly facilitated an introductory meeting by the representatives of the fund, and assisted investors with transferring their monies from their LPL Financial accounts to the investment, resulting in investors transferring $1,000,000.00 into the fund.
The AWC reported that Liebzeit never provided LPL Financial LLC with notification of his facilitation of the private securities transactions prior to his engagement in such. Further, Liebzeit never received the requisite written approval for him to engage in such transaction. As such, FINRA found that Liebzeit’s conduct was violative of FINRA Rules 2010 and NASD Rule 3040. Prior to FINRA’s disciplinary action against Liebzeit, public disclosure records reveal that Liebzeit was terminated by LPL Financial LLC on September 5, 2014, in connection with allegations of his misconduct.
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