Patrick Keith Sloan of Kewanee, Illinois, a stockbroker registered with LPL Financial LLC, has been fined $10,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Sloan committed forgery, caused the securities broker dealer to maintain false records or books, and engaged in unauthorized or discretionary trading. Letter of Acceptance, Waiver, and Consent No. 2021070741501 (February 10, 2023).
According to the AWC, from February to December 2020, during the time that he was associated with LPL Financial, Sloan forged five customers’ signatures on seven documents. Sloan electronically signed four account applications, an account transfer form, an opt-in for an electronic prospectus, shareholder communications, and a move money form on behalf of five customers. LPL Financial’s written policies forbade representatives from signing on behalf of customers regardless of whether they had the customer’s authorization or consent. Sloan also falsely attested in a compliance questionnaire that he had not signed on behalf of a customer on a document.
Additionally, from September 2018 to February 2021, Sloan exercised discretion in roughly 70 trades in the accounts of four customers. Sloan did not have written authorization from the customers or permission from LPL Financial to exercise discretion in those customers’ accounts. Sloan also falsely attested in compliance questionnaires that he had not exercised discretionary authority in any brokerage accounts. As a result, Sloan violated FINRA Rules 2010, 4511, and 3260(b). Sloan also violated NASD Conduct Rule 2510(b).
Sloan was discharged by LPL Financial on February 18, 2021, based upon allegations that Sloan engaged in discretionary trading. His registration with LPL Financial was terminated on March 16, 2021.
