National investment fraud lawyers KlaymanToskes is investigating barred broker Rhett Douglas Bedwell (CRD# 5664392) after his former brokerage firm, LPL Financial, is fined $150,000 by FINRA for failure to supervise him. Bedwell was barred by FINRA in March 2021 based on findings that he failed to comply with FINRA’s investigation after he allegedly used forged documentation to invest a client’s assets in a Ponzi scheme without their knowledge or consent.
If you suffered investment losses with Rhett Bedwell or LPL Financials’ Rogers, AR branch, contact attorney Lawrence L. Klayman at 888-997-9956 or email@example.com to discuss your recovery options.
According to FINRA’s Letter of Acceptance, Waive, and Consent (“AWC”), LPL Financial filed to terminate Bedwell in 2019 and amended the termination form the following year. The amended form revealed that Bedwell had been involved in a pending customer arbitration case which alleged that he moved a client’s Individual Retirement Account (IRA) to a different administrator. The same claimant alleged that Bedwell moved their assets into a Ponzi scheme.
In late 2020, FINRA sent Bedwell four letters between the months of September and December, requesting him to provide information and documentation in response to the allegations against him. Bedwell failed to fully respond to the requests of FINRA and declared he would not provide the outstanding information or documentation at any time. Based on his refusal to comply with these requests and his obstruction of FINRA’s investigation, Bedwell has been permanently barred from working as a stockbroker.
According to Brokercheck, Bedwell has also been involved in two additional customer investment related disputes. One claimant alleged that Bedwell used her assets to invest in an unsecured promissory note without her knowledge. The investor received over $355,000 from LPL Financial as compensation for the misconduct. Another claimant alleged Bedwell’s investment recommendations did not align with their risk tolerance, and that he provided false information, causing them to surrender two variable annuities.
On December 7, 2022, according to their BrokerCheck report, LPL Financial consented to sanctions and was fined $150,000 in connection with findings that it “failed to investigate red flags related to a registered representative’s undisclosed outside business activities (OBAS).”
According to FINRA’s Letter of Acceptance, Waive, and Consent (“AWC”), the firm violated FINRA rule 3110, which requires firms to establish and maintain a system to supervise brokerage activities and to reasonably investigate red flags that suggest misconduct may be occurring. In turn, it also violated rule 2010, which requires FINRA members to “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of their business.
Although Bedwell was not specifically identified in the AWC, his actions were further detailed through FINRA’s March 2021 filing which permanently barred the broker.
Affected investors that trusted Rhett Douglas Bedwell to manage their assets at LPL Financial have legal options to recover their losses. Contact Lawrence L. Klayman, Esq., at 888-997-9956, or firstname.lastname@example.org to discuss your potential case today.
KlaymanToskes offers legal services on a contingency fee basis, meaning that we do not collect a fee unless we are able to obtain a financial recovery for you. This saves investors the worry of paying attorney’s fees out of pocket. KlaymanToskes also has the experience and resources dedicated to your case, allowing the firm to recover over $250 million for investors in FINRA arbitrations alone.
Brokerage firms such as LPL Financial have a duty to sufficiently supervise all representatives at their firm. Brokerage firms must take the necessary steps to ensure that their brokers and advisors abide by all securities rules and regulations. When firms like LPL Financial fail to properly supervise their representatives, they may become liable for investment losses suffered by customers.
KlaymanToskes encourages investors who did who did business with any of the brokers listed below to review their portfolios for signs of broker misconduct or investment losses:
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered more than $250 million for investors in FINRA arbitrations and over $350 million in other securities litigation matters for its clients. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.