Michael Joseph Lancaster (also known as Mike Lancaster), of Canton, Ohio, a stockbroker registered with LPL Financial LLC, has been fined $10,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Lancaster made unsuitable investment recommendations. Letter of Acceptance, Waiver, and Consent No. 2021070463601 (November 11, 2022).
According to the AWC, during the time that he was associated with Kestra Investment Services LLC, Lancaster recommended that a customer invest $70,000.00 in shares of a commercial equipment finance and leasing fund. This high-risk and illiquid investment was not consistent with the customer’s financial situation. Therefore, Lancaster violated FINRA Rules 2010 and 2111.
While Lancaster was associated with LPL Financial LLC, that customer made an oral complaint concerning the fund. In an attempt to settle the complaint without LPL’s knowledge, Lancaster made payments to the customer. Lancaster never informed LPL about the payments or the complaint. Therefore, Lancaster violated FINRA Rule 2010.
This is not the first time that Lancaster has been the subject of a regulatory action concerning Lancaster’s conduct in the securities industry. FINRA Public Disclosure shows that Lancaster has been fined $5,000.00 and suspended as a stockbroker by NASD because Lancaster engaged in unauthorized trading. Letter of Acceptance, Waiver, and Consent No. E8A2004089501 (December 2, 2005).
According to the AWC, on or about June 26, 2002, during the time that he was associated with NFP Securities, Lancaster executed discretionary transactions in variable annuity subaccounts belonging to approximately 62 customers. Lancaster did not obtain prior written authorization from the securities broker dealer or the customers to engage in discretionary trading. Therefore, Lancaster violated FINRA Rule 2010 and NASD Rules 2510(b) and 2110.
On April 19, 2006, a customer initiated investment related NASD securities arbitration claim involving Lancaster’s conduct was settled for $15,000.00 in damages based upon allegations that Lancaster made unsuitable recommendations of variable annuities during the time that Lancaster was associated with Capital Analysts Incorporated. NASD Arbitration No. 05-00736.
Lancaster was also referenced in a complaint that was settled on May 26, 2021, for $15,000.00 in damages based upon allegations that Lancaster made unsuitable recommendations and made misrepresentations of material fact in connection with the sale of closed-end funds when Lancaster was associated with LPL Financial LLC.
Lancaster was associated with LPL Financial LLC in Canton, Ohio, as a stockbroker from May of 2011 to February of 2021. On January 27, 2021, LPL Financial LLC discharged Lancaster based upon allegations that Lancaster shared in customer losses and issued payments to customer to cover subsequent losses without informing the securities broker dealer.
