FINRA Bars Former LPL Advisor Who Allegedly Misappropriated Elderly Client’s Funds

Posted on October 15th, 2021 at 11:09 AM
FINRA Bars Former LPL Advisor Who Allegedly Misappropriated Elderly Client’s Funds

From the Desk of Jim Eccleston at Eccleston Law:

The Financial Industry Regulatory Authority (FINRA) has barred a former LPL advisor who allegedly misappropriated a senior client’s funds and subsequently failed to cooperate in FINRA’s investigation. 

Eric Hollifield consented to the bar by signing a FINRA Letter of Acceptance, Wavier and Consent (AWC). According to BrokerCheck, Hollifield’s account features a disclosure regarding a pending client dispute where “the customer alleges that registered representative misappropriated funds from her account.” The disclosure indicates that Hollifield converted the funds between August 2020 and his termination for LPL in August 2021 for allegedly failing to disclose an outside business activity (OBA) to the firm. 

While the dispute still is pending, and the client has requested damages of $1.24 million, in September 2021, Hollifield informed FINRA that he would refuse to appear for any on-the-record testimony and would not provide any requested documents or information. That refusal led to the bar. Prior to joining LPL in 2016, Hollifield worked at Merrill Lynch, H&R Block Financial Advisors and Sterne Agee Financial Services. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters. 

Tags: eccleston, eccleston law, finra, lpl

Return to Archive



Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.


February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).