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

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