Galvin Charges Charles Schwab Over Unregistered Advisor

Posted on July 30th, 2021 at 2:39 PM
 Galvin Charges Charles Schwab Over Unregistered Advisor

From the Desk of Jim Eccleston at Eccleston Law:

Secretary of the Commonwealth of Massachusetts, William Galvin, has filed suit against Charles Schwab & Co. over unethical practices that enabled an unassociated advisor to continue accumulating advisory fees from client accounts for several years after his registration had expired. According to the complaint, James Patrick O’Connell collected nearly $125,000 in advisory fees after his registration lapsed in 2014. According to Galvin, the Massachusetts Securities Division uncovered the alleged illegal practices during a separate investigation into O’Connell’s potential exploitation of senior citizens. 

The Massachusetts Securities Division is requesting an order to that would fine O’Connell and Schwab as well as compel Schwab to reimburse investors for all ill-gained advisory fees. The Massachusetts Securities Division reprimanded O’Connell in 2012 after O’Connell operated on Schwab’s platform after his registration had expired two years prior. The complaint further alleges that Schwab’s supervisory failures enabled O’Connell, who was unregistered, to receive payments from client accounts for more than six years. Meanwhile, O’Connell continued to collect fees and recommend allegedly unsuitable investments for certain clients, according to the complaint. 

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

Tags: eccleston, eccleston law, charles schwab

Return to Archive



Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.


May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.


May 15, 2024
NFA Issues Order Against Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.