Broker Barred for Making Reckless Misrepresentations

Posted on April 21st, 2020 at 4:40 PM
Broker Barred for Making Reckless Misrepresentations

From the Desk of Jim Eccleston at Eccleston Law LLC:

Patrick M. Coogan, a former registered representative at LPL Financial, has agreed to a bar from the securities industry.  On March 17, 2020, Coogan signed a letter of Acceptance, Waiver and Consent (“AWC”), agreeing to be barred from associating with any FINRA member firm in any capacity for making reckless misrepresentations in connection with loans obtained by a customer.    

According to FINRA Enforcement, Coogan signed seven “control agreements” required by lenders in connection with loans obtained by one of Coogan’s customers in which the customer’s LPL account was pledged as collateral.  FINRA Enforcement found that Coogan made multiple misrepresentations on the control agreements which were supposed to perfect the bank’s security interest in the loans.  

FINRA Enforcement found that Coogan misrepresented that he was authorized to sign the agreements on behalf of LPL, despite the fact that he did not have such authorization.  Additionally, FINRA also found that Coogan misrepresented that LPL’s books had been marked to reflect that the assets had been pledged as collateral, and also misrepresented that LPL had not received notice of any other claim on the account’s assets.  As a result of these misrepresentations, Coogan enabled the customer to over-pledge their account assets. FINRA Enforcement found that Coogan knew or was reckless in not knowing that the agreements he signed contained misrepresentations.

FINRA Enforcement found that Coogan’s conduct violated FINRA Rule 2010.  By signing the AWC, Coogan accepted and consented to the entry of FINRA’s findings, without admitting or denying those findings.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.


Related Attorneys: James J. Eccleston

Tags: eccleston, eccleston law, james eccleston, misrepresentations, patrick coogan, finra

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