Former LPL Advisor Receives 8-Year Prison Sentence For Misappropriation of Client Funds

Posted on January 31st, 2023 at 1:30 PM
Former LPL Advisor Receives 8-Year Prison Sentence For Misappropriation of Client Funds

From the Desk of Jim Eccleston at Eccleston Law.

A former LPL financial advisor recently was sentenced to more than eight years in prison, or 100 months, for his role in a scheme that misappropriated $2.8 million from six clients.

The former Massachusetts-based advisor, James Couture, pleaded guilty in September to four counts of wire fraud, four counts of aggravated identity theft, one count of investment advisor fraud, and one count of witness tampering. Prosecutors allege that Couture misappropriated $2.8 million between 2009 and 2020 by transferring funds out of six client accounts and investing the funds in fictitious mutual funds before selling other client’s positions to pay investment returns. In one instance, Couture sold a client’s variable annuities in June 2016 to pay withdrawals to another client, according to prosecutors.

Prosecutors further allege that Couture forged several client signatures and improperly convinced clients to sign documents by falsely claiming that transaction proceeds would be used for the client’s benefit. “Couture also stole from clients using their own profit-sharing plans and conducting transactions in their names to disguise his fraudulent transactions”, according to prosecutors.

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

Tags: eccleston, eccleston law, advisors, law, sec, lpl

Return to Archive

TESTIMONIALS

Previous
Next

Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.

LATEST NEWS AND ARTICLES

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.

September 21, 2023
SEC Charges Private Equity Firm Over Fee Disclosure Failures to Affiliate

The Securities and Exchange Commission (SEC) has charged Prime Group Holdings LLC, a private equity firm specializing in alternative real estate asset investments, with
inadequate disclosure of millions of dollars in real estate brokerage fees paid to a brokerage firm owned by its CEO.

September 20, 2023
SEC Orders Legendary Capital Founder and REIT Advisors to Pay Nearly $5 Million

Corey Maple, co-founder of non-traded REIT sponsor Legendary Capital, has agreed to a $100,000 civil penalty to settle charges brought by the Securities and Exchange Commission (SEC).