Robert Matthew Krieger of New York New York a stockbroker formerly employed by LPL Financial LLC has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he engaged in outside business activities without disclosing them to LPL Financial. Letter of Acceptance Waiver and Consent No. 2441634 (Sept. 11, 2018).
According to the AWC, from October of 2015 to February of 2016, Krieger was required to request and obtain permission from LPL Financial before engaging in an outside business activity, which included activities involving the formation of a company. The AWC stated that in October of 2015, Krieger sought the firm’s approval to partner with four other individuals to conduct business through Perennial Equities LLC – a company providing financial insights and guidance to companies concerning mergers and acquisitions, employee benefits and pension plans. The AWC stated that Krieger’s request was denied by LPL Financial. Nonetheless, Krieger persisted in engaging in those outside business activities, including his solicitation of the customers, consultations with accounting and legal professionals, and drafting of the operating agreement.
The AWC stated that the Articles of Organization for Perennial Equities LLC had been filed by Krieger with the State of California on January 12, 2016. Krieger reportedly solicited business on Perennial’s behalf, referring to himself as the founder and chief executive officer. The AWC indicated that Krieger even procured marketing materials and began negotiating engagement agreements on Perennial’s behalf. All the while, Krieger evidently disregarded LPL Financial’s policies which mandated disclosures and authorizations of outside business activities. Consequently, FINRA found that Krieger’s conduct was violative of FINRA Rules 2010 and 3270.
FINRA Public Disclosure reveals that Krieger has been identified in three customer initiated investment related disputes pertaining to accusations of Krieger’s misconduct while employed with Merrill Lynch, Pierce, Fenner and Smith Inc. Specifically, on July 26, 2004, a customer initiated investment related complaint regarding Krieger’s activities was settled for $80,000.00 in damages supported by allegations that Krieger over-concentrated the customer’s assets in over-the-counter equities.
On October 18, 20007, another customer filed an investment related complaint involving Krieger’s conduct in which the customer requested $50,000.00 in damages based upon accusations that Krieger effected mutual fund transactions in the customer’s account that were inappropriate for the customer. Then, on May 12, 2008, a customer filed an investment related complaint concerning Krieger’s activities where the customer sought unspecified damages supported by allegations of misrepresentations being made to the customer, and Krieger’s failure to abide by the customer’s investment instructions.
Krieger was discharged by LPL Financial on August 29, 2016 founded on accusations that he engaged in outside business activities in violation of LPL Financial’s policy.
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