Scott Mason of Lakewood Colorado a stockbroker formerly registered with LPL Financial LLC has been fined $5,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that a customer’s funds had been borrowed by Mason in violation of the policies of LPL Financial LLC. Letter of Acceptance Waiver and Consent No. 2017056094901 (July 3, 2019).
According to the AWC, between April of 2015 and August of 2016, Mason was subject to written supervisory procedures implemented by LPL Financial LLC which disallowed stockbrokers from either lending funds to a customer of the firm or borrowing from a customer of the firm absent limited exceptions where the loans involved the stockbrokers’ family members.
The AWC stated that a non-family member customer of the firm, GR, provided $108,360.00 to Mason through six loan arrangements. Evidently, only $50,000.00 of the $108,360.00 borrowed from GR by Mason had been evidenced through a promissory note. Evidently, there was no attempt made by Mason to secure the firm’s authorization of the loans when they were consummated.
Moreover, an annual compliance questionnaire had been administered to Mason by the firm which called upon Mason to confirm whether he entered into any loan arrangements with customers of the firm. Mason reportedly lied about the loans he arranged with GR. FINRA found Mason’s unapproved customer loan arrangements to be violative of FINRA Rules 2010 and 3240.
FINRA Public Disclosure confirms that Mason has been identified in five customer initiated investment related disputes pertaining to accusations of his misconduct during the time that he was associated with New England Securities. For example, a customer filed an investment related complaint concerning Mason’s conduct where the customer sought $16,216.76 in damages founded on allegations that false or misleading statements were made concerning insurance products sold to the customer.
Thereafter, a customer filed an investment related complaint in regards to Mason’s activities in which the customer sought $24,200.05 in damages based upon accusations that the customer was placed into investments which failed to be suitable for the customer given the customer’s objectives for investing, financial goals, and investor profile; and the customer was placed into a policy primarily to produce commissions for Mason. Thereafter, a customer filed an investment related complaint involving Mason’s conduct where the customer sought $14,683.00 in damages supported by allegations that omissions had been made to the customer concerning a variable life insurance policy.
Mason has been discharged by Western Wealth Management LLC and LPL Financial LLC on October 5, 2017 founded on accusations of the unapproved customer loan arrangements as referenced by the FINRA disciplinary action brought against Mason, and Mason having been listed as a joint owner on a customer’s account.
