Skip to content
The DI Wire
Click Here to Subscribe to Our Free Daily News Updates

FINRA Files Accusations of Unsuitable Trading Against former IFG and LPL Advisor

FINRA Files Accusations of Unsuitable Trading Against former IFG and LPL Advisor. Broker-dealer, brokerage, Financial Industry Regulatory Authority, financial services, FINRA, RIA
FINRA Files Accusations of Unsuitable Trading Against former IFG and LPL Advisor. Broker-dealer, brokerage, Financial Industry Regulatory Authority, financial services, FINRA, RIA

The Financial Industry Regulatory Authority alleges various charges against D. Allen Blankenship, including unsuitable mutual fund trading on behalf of customers without approval from his supervisors or customers.

During the period from August 2016 to September 2019, FINRA alleges that while registered with San Diego-based Independent Financial Group LLC, Blankenship engaged in unsuitable mutual fund trading. Specifically, FINRA says Blankenship, solely to earn commissions, recommended unsuitable short-term trading of Class A mutual funds that caused 11 customer accounts to pay $21,158.45 in excessive sales charges. Blankenship also caused 37 customer accounts to miss $21,873.91 in Class A mutual fund breakpoint discounts. According to FINRA, he did so by dividing his customers’ purchases of the same mutual fund into multiple purchases of less than $20,000 each to evade detection and supervisory review by his firm The unnecessary division of purchases resulted in the customers’ not receiving available breakpoint discounts.

FINRA says Blankenship’s pattern of dividing customers’ mutual fund investments into multiple purchases of less than $20,000 circumvented written procedures and supervisory reviews of the firm that applied to transactions of $20,000 or more. Supposedly, Blankenship further circumvented firm procedures and supervisory systems by failing to complete required forms concerning mutual fund transactions, failing to obtain the customers’ signatures on the forms, and failing to submit the forms for supervisory approval.

Finally, FINRA says Blankenship mismarked 250 mutual fund transactions as unsolicited, causing IFG’s books and records to be inaccurate, thereby violating FINRA rules.

The department of enforcement has requested relief including charges required to disgorge fully any and all ill-gotten gains and/or make full and complete restitution, together with interest.

According to BrokerCheck, Blankenship has been affiliated with at least 13 firms since 1997, including LPL Financial for seven years.

Click here to visit The DI Wire directory page.