Investigation of Former LPL Financial LLC Broker Jason Labelle
Posted on Tuesday, May 5th, 2020 at 8:57 pm
Former LPL Financial LLC broker Jason Labelle (CRD# 5654529) was suspended by FINRA for selling away from his member firm. Labelle has been registered with LPL Financial LLC in Pittsfield, Massachusetts from 2015 to 2019.
Selling away is when a broker recommends a client purchase securities that are not offered by the broker’s member broker firm. This is a risky practice because brokerage firms have a list of approved products that they have vetted and approved, and other investments may be risky and cause investors to suffer investment losses.
In January 2020, Labelle was sanctioned to a $5,000 fine and suspended for three months after he consented to the sanctions and to the entry of findings that, while associated with LPL Financial LLC, he “participated in an outside business activity involving a real estate development project that was financed with money lent by one of his customers without providing prior written notice to his firm. The findings stated that LaBelle falsely confirmed that he had fully disclosed his outside business activities on two annual compliance questionnaires submitted to his firm.”
Labelle has been the subject of four customer complaints between 2012 and 2017, three of which were denied, according to his CRD report:
June 2017. “Plaintiffs allege advisor made misrepresentations on the terms of a promissory note he recommended Plaintiffs purchased in February 2016, and without authorization withdrew money to purchase the note from Plaintiffs’ taxed deferred accounts.” The case is currently pending. The complaint was regarding promissory notes.
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 LLC may be liable for investment or other losses suffered by Labelle’s customers.