Robert Charles Mangold, a Stockbrokerwith LPL Financial LLC, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) registered firm after consenting to findings that he failed to cooperate with FINRA in their investigation into allegations that Mangold borrowed funds from a customer in violation of his firm’s policy. Letter of Acceptance, Waiver, and Consent, No. 2015044146601 (Mar. 31, 2015). Mangold is prohibited from acting as a broker or otherwise associating with firms that sell securities to the public.
According to the AWC, on June 12, 2013, LPL had filed a Form U5 terminating Mangold’s registration due to him borrowing funds from a client in violation of the firm’s policy. On July 5, 2013, FINRA requested that Mangold provide a signed statement responding to such allegations, pursuant to Rule 8210.
The AWC reported that on July 30, 2013, Mangold had provided FINRA a signed statement indicating that he had provided customer AS a check for $15,000.00. Mangold reportedly attached a copy of the check made out to AS as an exhibit. FINRA found that Mangold, in fact, never sent the check to AS and was falsifying his statement. In misleading FINRA’s staff, FINRA found Mangold to have violated Rules 8210 and 2010, barring him as a result.
Firms and individuals, not surprisingly, are prohibited from unauthorized use of customer funds, borrowing of a customer’s securities or funds, forgery, non-disclosures or misstatements of material facts, and various deceptions and manipulations. Such conduct can also be found to violate criminal and other civil laws, and be subject to sanction from the federal and state government bodies.
FINRA registered representatives like Mangold who do not cooperate with FINRA’s investigations often face a permanent bar from practicing in the securities industry as such lack of cooperation violates FINRA’s Rule 8210 – requiring that no member or person shall fail to provide information or testimony or permit an inspection and copying of books, records, or accounts pursuant to the rule. FINRA typically accompanies a Rule 8210 violation with a Rule 2010 violation when individuals, according to FINRA, do not appear to observe high standards for commercial honor and just and equitable principles of trade.
Public disclosure records according to FINRA’s BrokerCheck reveal that Mangold has been subject to five disclosure incidents. On February 26, 2010, Mangold settled a case with a customer for $407.78 after a customer stated that he was told that a variable annuity policy would be paid up in seven years and that the costs/fees would remain the same for the life of the contract. On May 29, 2013, LPL Financial LLC discharged Mangold as a result of his aforementioned borrowing violations. On May 30, 2013, Mangold settled a customer dispute for $60,000.00 after allegations that financial advisors mismanaged accounts and recommended unsuitable annuities, as well as claimed negligent supervision, common law fraud, and violation of New Jersey securities laws.
Guiliano Law Group
If you have been the victim of securities fraud and you have a complaint, you should consult with an attorney. The practice of Nicholas J. Guiliano, Esquire, and The Guiliano Law Group, P.C., is limited to the representation of investors in claims for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
