FINRA Bars Former LPL Financial Broker for Refusing to Cooperate With Investigation
From the desk of Jim Eccleston at Eccleston Law
?The Financial Industry Regulatory Authority (FINRA?) barred Buddy Dean Mason, a former LPL Financial broker in Lakeland, Florida, after he refused to provide documents and information during an investigation into a customer complaint involving an alleged outside investment. ?AdvisorHub reports that Mason accepted the bar without admitting or denying FINRA's findings, according to a?n acceptance waiver and consent (AWC) letter. He resigned from LPL in January and no longer holds registration as a broker or investment adviser.
The investigation followed a customer complaint in May alleging that Mason presented an investment opportunity outside LPL that resulted in losses, according ?A?dvisorHub's review of BrokerCheck. LPL reported the complaint in June, prompting FINRA to investigate. ?AdvisorHub further reports that the regulator sent Mason requests for documents and information in July and August. Mason acknowledged receiving the requests in September but refused to comply.
FINRA found that Mason's refusal violated Rule 8210, which requires individuals to cooperate with regulatory investigations. The bar stemmed from his failure to provide the requested information, not from any determination about the underlying investment allegations.
?According to AdvisorHub, BrokerCheck lists two settled customer complaints alleging that Mason offered investment opportunities outside LPL. One complaint, filed in December, alleged selling away and sought $175,000. The parties settled it in March for $129,500. A second complaint, filed in May, sought $100,000 and settled in June for $10,000. BrokerCheck states that Mason did not contribute to either settlement.
FINRA's action did not identify the outside investment. The case comes as FINRA advances a broad overhaul of its rules governing outside business activities and private securities transactions. BrokerCheck also lists Mason's involvement, beginning in 2023, in Burgeon Enterprises LLC, a restaurant franchise business. His work there was not investment-related, and the available information does not connect the business to FINRA's investigation?, AdvisorHub reports.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
Tags: eccleston, eccleston law, finra investigation, broker misconduct, lpl financial, finra bar, outside investments
