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Our law firm is investigating LPL Financial relating to the supervision of James “Jeb” Bashaw (“Bashaw”), as it relates to allegations of participating in a private securities transaction without prior written disclosure and approval from LPL, which is also known as “selling away.” KlaymanToskes is currently handling securities arbitration claims on behalf of former customers of LPL who sustained substantial losses as a result of “selling away” on the part of another former LPL financial advisor.
On September 24, 2014, Bashaw was discharged from LPL for “failure to follow firm policies and industry regulations.” Bashaw’s securities license specifically alleges that he was “discharged for (a) participating in private securities transactions without providing written disclosure to and obtaining written approval from the firm, (b) borrowing from a client, and (c) engaging in a business transaction that created a potential conflict of interest without providing written disclosure to and obtaining written approval from the firm.”
Under FINRA Rules, while Bashaw was registered with LPL, the firm was obligated to properly supervise the activities of Bashaw and the LPL office where he worked. Failing to properly supervise their representatives can result in liability on the part of the LPL. In many cases of selling away, red flags existed which should have alerted the brokerage firm to transactions well in advance of the time the advisor is finally terminated.
If you have information relating to this investigation, please contact our law firm at 888-997-9956.