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FINRA Fines and Suspends Ex-LPL Financial Advisor

FINRA Fines and Suspends LPL Financial Advisor. Broker-dealer, brokerage, financial services, RIA, SEC, Securities and Exchange Commission

The Financial Industry Regulatory Authority suspended and fined Kevin J. Carroll for borrowing money from one of his LPL Financial customers without obtaining approval from his member firm.

According to FINRA, in June 2021, during a meeting with his supervisor, Carroll disclosed that he intended to borrow money from one of his friends who was also his customer at LPL.

Carroll’s supervisor informed him that he would not be permitted to borrow money from the customer. However, in July 2021, FINRA says Carroll borrowed $31,170 from the customer. The loan was documented by a promissory note. Carroll has not made any payments on the loan and the customer has not complained. However, Carroll violated FINRA rules by proceeding with the loan in violation of LPL’s prohibition. LPL terminated Carroll’s registration in Aug. 2021 for reasons unrelated to the loan.

Additionally, from March 2021 to July 2021, Carroll exercised discretion without written authorization in two senior customers’ accounts when executing at least seven transactions.

Carroll consented to a four-month suspension from associating with any FINRA member in all capacities and a $10,000 fine.

According to BrokerCheck, Carroll has been affiliated with eight FINRA-member firms since 1999, including Merrill Lynch, Pierce, Fenner & Smith Inc., Citigroup Global Markets and Banc of America Investment Services.

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