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Ladenburg Chairman Steps Down Amid SEC Allegations

Phillip Frost, chairman of Ladenburg Thalmann Financial Services Inc. (NYSE: LTS), has stepped down from his role at the company following charges filed by the Securities and Exchange Commission earlier this month.

Phillip Frost, chairman of Ladenburg Thalmann Financial Services Inc. (NYSE: LTS), has stepped down from his role at the company following charges filed by the Securities and Exchange Commission earlier this month, alleging that he and others participated in market manipulation schemes that generated $27 million from unlawful stock sales.

The SEC recently charged a group of 10 individuals and 10 associated entities for manipulating the share price of the stock of three companies in classic pump-and-dump schemes. Frost allegedly participated in two of the three schemes, which were all allegedly orchestrated by Barry Honig.

Frost and 19 others were charged with violating antifraud, beneficial ownership disclosure, and registration provisions of the federal securities laws.

Ladenburg appointed president and chief executive officer Richard Lampen to replace Frost. Adam Malamed, Ladenburg’s executive vice president and chief operating officer, will also join the board.

Frost said, “I have decided to retire from the Ladenburg Board and will concentrate my efforts on OPKO Health and my philanthropic interests. As a long-term shareholder, I am confident in Ladenburg’s outlook and look forward to its continued growth and success.”

Ladenburg Thalmann is a publicly-traded diversified financial services company based in Miami, Florida. Its subsidiaries include independent advisory and brokerage firms Securities America, Triad Advisors, Securities Service Network, Investacorp, and KMS Financial Services, as well as Premier Trust, Ladenburg Thalmann Asset Management, Highland Capital Brokerage, in addition to independent life insurance brokerage company Ladenburg Thalmann Annuity Insurance Services, a full-service annuity processing and marketing company, and investment bank Ladenburg Thalmann & Co. Inc.

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