Erez Law is investigating claims regarding Marc Halan Baldinger (CRD #1942349, Jensen Beach, Florida). Baldinger recently submitted an AWC in which he was assessed a deferred fine of $10,000, suspended from association with any FINRA member in any capacity for 18 months and ordered to pay $233,000, plus interest, in disgorgement of selling compensation. See FINRA Case #2013037765901. The suspension is in effect from November 17, 2014, through May 16, 2016. Slocum was associated with LPL Financial, LLC, (Stuart, Florida) from September 2001 until December 2012.
FINRA found that Baldinger participated in private securities transactions for selling compensation without his member firm’s prior written approval. In particular, between August 19, 2010 and November 24, 2012, Baldinger introduced 20 individuals and entities to brokerage firms RS and AFS, and assisted the customers in establishing accounts and purchasing inverse strips of Government National Mortgage Association Interest Only bonds (“GNMA I/Os”), according to FINRA. The 20 clients, all high net worth individuals and entities, ultimately invested a combined total of at least $12 million in GNMA I/Os. Baldinger allegedly received compensation in connection with the investments totaling approximately $233,427.
FINRA also found that on December 10, 2004, Baldinger established Eventus, Ltd. with himself as the limited partner. Although Baldinger disclosed the existence of Eventus to LPL Financial, he failed to disclose the other businesses engaged in by Eventus or his role in those businesses, according to FINRA. Baldinger and his wife owned 100% of Eventus. On June 17, 2010, Baldinger established Ignorus, LLC, naming Eventus, LLC as the managing member and manager. Further, on June 30, 2010, Baldinger established Aegis Holdings, LLC (“Aegis”) with Ignorus as the managing member and manager. FINRA found that Aegis was established for the purpose of investing the funds of the 20 individuals and entities described above in the GNMA I/Os. Baldinger was the individual behind the entities who managed the business of Aegis and received compensation as the manager, according to FINRA.
FINRA’s findings also stated that Baldinger opened an account with another broker-dealer and did not notify his firm prior to or after opening the account. In addition, Baldinger allegedly failed to disclose his status as a registered representative with another member firm to the executing broker-dealer. In entering into the AWC, Baldinger neither admitted nor denied FINRA’s findings.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, LPL Financial may be liable for investment or other losses suffered by Baldinger’s customers.
If you were a client of Baldinger or LPL Financial, LLC, and have suffered investment losses or financial irregularities, please contact Erez Law to explore your legal options. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 888-840-1571 or complete our “contact form“.