Paul Richard McGonigle, of New Bedford, Massachusetts, a stockbroker formerly registered with LPL Financial LLC, has been permanently barred as a stockbroker and in other capacities by United States Securities and Exchange Commission (SEC) based on findings that McGonigle committed fraud, money laundering, and identity theft. In the Matter of Paul R. McGonigle, Order Instituting Administrative Proceedings, File No. 3-21958 (June 6, 2024).
According to the Order, SEC brought this regulatory action against McGonigle following his guilty plea in a federal criminal case in the District of Massachusetts. On February 3, 2023, McGonigle admitted to eight separate federal offenses: one count of mail fraud, three counts of wire fraud, one count of investment adviser fraud, one count of identity theft, and two counts of money laundering. His plea also included an agreement acknowledging that these offenses were committed while he was working as both a stockbroker and an investment adviser, and that they involved violations of federal securities laws.
SEC stated that between 2015 and 2021, McGonigle reportedly stole over $1,400,000.00 from at least fifteen customers. Many of these customers were elderly or suffered from serious health conditions. He gained access to their funds by impersonating them on phone calls with annuity providers, engaging in forgery, and misleading them into surrendering annuities based on false promises of reinvestments. Instead of using the funds as promised, McGonigle apparently misappropriated the money for his own personal and business expenses.
As a result, the SEC issued an order permanently banning McGonigle from working with any broker-dealer, investment adviser, or related financial entity. The order prohibits him from returning to the securities industry in any registered capacity.
On November 16, 2020, McGonigle was also barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because McGonigle failed to respond to FINRA’s request for information. FINRA Case No. 2020066707401.
FINRA issued a Notice of Suspension to McGonigle on August 12, 2020. On September 8, 2020, McGonigle responded by submitting a hearing request to FINRA’s Office of Hearing Officers (OHO). However, on October 15, 2020, the OHO directed McGonigle to file a supplement by October 22, 2020, explaining his defenses to the regulator’s action. McGonigle failed to submit the required supplement, resulting in the dismissal of the proceeding on October 23, 2020.
Subsequently, McGonigle requested that his case be reopened on October 26, 2020. On November 5, 2020, the OHO ordered McGonigle to provide a written statement by November 10, 2020, establishing a reason for reopening the case. McGonigle again failed to file the required statement, and his request was denied on November 12, 2020.
Since McGonigle did not request the termination of his suspension within three months of the original notice, the suspension automatically converted into a permanent bar on November 16, 2020.
FINRA Public Disclosure also shows that on January 8, 2007, a customer initiated investment related FINRA securities arbitration claim involving McGonigle’s conduct was settled for $247,500.00 in damages based upon allegations that McGonigle engaged in churning, excessive trading, and unsuitable trading in fixed annuities, variable annuities, and mutual funds when McGonigle was associated with SII Investments Inc. FINRA Arbitration No. 06-05414.
McGonigle was associated with LPL Financial LLC in New Bedford, Massachusetts from February 14, 2018 to June 28, 2019.
