Sonn Law Group is investigating claims regarding Charles Caleb Fackrell (CRD #5369665, Boonville, North Carolina). Fackrell recently submitted an AWC in which he was barred from association with any FINRA member in any capacity. See FINRA Case #2014043705201. Fackrell was associated with LPL Financial, LLC, from June 2010 until his termination in December 2014. The Form U-5 filed by LPL with FINRA to terminate Fackrell’s registration stated that “representative terminated based on (a) allegations of participation in unapproved private securities transactions and (b) felony arrest for obtaining property under false pretenses.”
FINRA found that Fackrell failed to provide FINRA-requested documents and information involving an investigation into allegations that he converted customer’s funds and sold private securities offerings away from his member firm, without its knowledge or approval. In entering into the AWC, Fackrell neither admitted nor denied FINRA’s findings.
FINRA Rule 3280, formerly NASD Rule 3040, provides that a broker may only sell securities with the knowledge and approval of his or her firm. When a broker sells securities without processing the order through the firm and without the firm’s permission or knowledge, this violates FINRA rules and is known as “selling away.” Federal and state law define securities broadly. Therefore, even products such as leasing arrangements or promissory notes, may be securities which require firm approval. Selling away often involves investment securities that are in the form of a private placement or other non-public investment.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, LPL may be liable for investment or other losses suffered by Fackrell’s customers.
If you were a client of LPL or Fackrell, and have suffered investment losses or financial irregularities or invested in promissory notes or limited partnership agreements, please contact Sonn Law Group to explore your legal options, Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our “contact form.”