Joshua Daniel Mosshart, of Westlake Village, California, a stockbroker formerly registered with LPL Financial LLC, has been named in a customer initiated investment related arbitration claim on February 2, 2017, in which the customer requested $50,000.00 in damages based upon allegations that Mosshart solicited the customer to invest in products were not approved by LPL Financial LLC, converted the customer’s funds, and committed fraud. The customer additionally alleged that LPL Financial LLC negligently supervised Mosshart’s activities.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Mosshart has been named in four additional customer initiated investment related disputes containing allegations of his misconduct while employed with LPL Financial LLC. Specifically, on April 21, 2009, a customer filed an investment related written complaint involving Mosshart’s conduct, in which the customer requested $100,000.00 in damages based upon allegations that Mosshart made misstatements concerning the customer’s tax liability on investments, which caused the customer to bear undue tax consequences upon liquidation.
Subsequently, on November 19, 2010, a customer initiated investment related arbitration claim regarding Mosshart’s activities was settled for $52,743.75 in damages based upon allegations that Mosshart negligently handled the customer’s investment portfolio, and breached his fiduciary and contractual obligations in reference to a customer’s variable annuity exchange and fee-based investment account. The customer also alleged that LPL Financial LLC failed to supervise Mosshart’s activities.
Further, on February 26, 2016, a customer initiated investment related civil action involving Mosshart’s conduct was settled for $119,500.00 in damages based upon allegations that Mosshart committed state and federal law violations pertaining to an Enviro Board Corporation bond which Mosshart sold the customer. On December 2, 2016, another customer filed an investment related arbitration claim regarding Mosshart’s activities in which the customer requested $370,000.00 in damages based upon allegations that from January of 2012 to December of 2016, Mosshart sold the customer investments outside the auspices of his firm, and defrauded the customer.
Mosshart has been permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that effected private securities transactions which were not authorized by his firm. Letter of Acceptance, Waiver and Consent, No. 2012035172301 (Jan. 7, 2014).
According to the AWC, in 2011, Mosshart received permission from LPL Financial to engage in an outside business activity, in which the firm allowed him to work as a sales representative for Enviro Board Corporation; however, he was instructed not to solicit firm customers to make investments in the outside entity. Yet, from May of 2011 to November of 2012, at a time when Mosshart was associated with LPL Financial LLC, he evidently facilitated an estimated $5,000,000.00 worth of investment purchases in Enviro Board Corporation from twenty customers, six of whom were customers of LPL Financial LLC.
Additionally, while Mosshart was associated with LPL Financial, he reportedly became the president of Enviro Board Corporation; however, he failed to notify LPL Financial in this regard. FINRA found that Mosshart’s failure to notify his firm concerning his activities with Enviro Board Corporation was conduct violative of FINRA Rules 2010 and 3270. Additionally, FINRA found that Mosshart failed to notify and seek approval from LPL Financial for purposes of engaging in private securities transactions. Consequently, Mosshart’s conduct was deemed violative of FINRA Rule 2010 and NASD Rule 3040.
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