Michael Hartlett consents to FINRA suspension and fine for discretionary trading in an investor’s account without prior written authorization in a Letter of Acceptance, Waiver, and Consent. The consent was also based on the submission of false statements in compliance questionnaires from 2018-2020 stating that he was not exercising discretionary trading authority in his customer’s brokerage accounts.
According to Michael Hartlett, after joining LPL in 2018, an investor opened three separate accounts. The investor gave verbal authority to Michael Hartlett for him to trade in the investor’s accounts. Michael Hartlett did not disclose this grant of discretionary trading authority to LPL. Michael Hartlett did not submit industry-required forms to LPL, nor did he include this discretionary authority in his responses to annual compliance questionnaires. “Financial advisors must receive prior authorization for all account transactions.”
An investigation by FINRA was initiated by a tip to FINRA’s Office of the Whistleblower. FINRA’s investigation found that Michael Hartlett committed various violations of FINRA rules. A FINRA investigation reflects that Michael Hartlett was given verbal discretionary trading authority. Michael Hartlett did not have the investor complete the mandatory industry-required documentation.
Michael Hartlett has consented to a 10-day suspension from associating with any FINRA member in all capacities and a $5,000 fine.
Michael Hartlett recently moved from LPL Financial, LLC to International Assets Advisory, LLC. Current and former customers of financial advisor Michael Hartlett with losses exceeding $100,000, and who may have information relating to the manner in which the financial advisor handled their accounts, are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131.
KlaymanToskes is a leading national securities law firm that practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. KlaymanToskes has recovered more than $220 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Lawrence L. Klayman, Esq. (561) 542-5131