The Financial Industry Regulatory Authority fined an ex-LPL Financial and ex-Woodbury Financial broker $10,000, claiming she broke several LPL rules regarding relationships with clients, violating FINRA Rule 2010 governing standards of commercial honor and principles of trade.
Specifically, former broker and RIA Jodie Lane accepted gifts worth more than $100 from a client, acted as power of attorney for the same client, was designated as a beneficiary on the client’s account, and had check writing authority over the client’s account — all without receiving LPL approval, FINRA claimed.
On top of all that, Lane also stated in three annual compliance questionnaires that she did not have any customer relationships such as a power of attorney to report nor had she received gifts valued at more than $100 from any client, which “was not true,” according to FINRA.
Without admitting or denying FINRA’s findings, Lane signed a letter of acceptance, waiver and consent Tuesday in which she agreed to pay the fine and be suspended for four months from association with any FINRA member in any capacity. FINRA accepted the letter Wednesday.
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However, Lane is no longer an RIA or registered broker, according to FINRA’s BrokerCheck website. She voluntarily resigned from LPL in July 2017, the AWC letter stated.
The firm filed a Form U5 terminating her registration on Aug. 8, 2017, and then amended the Form U5 on Oct. 24, 2017, stating it started a review of Lane tied to her actions with the client, according to FINRA. Lane joined Woodbury in 2017 but left this year for a reason unspecified in the AWC letter.
LPL declined to comment Thursday. Woodbury parent Advisor Group and Jonathan Hackbarth, an attorney with Quarles & Brady — the law firm representing Lane in the dispute — did not immediately respond to requests for comment.
A client identified in the letter only as “NL” was Lane’s long-time customer — as well as Lane’s “second cousin once removed.” The client followed Lane to LPL when the broker joined the firm in 2011, according to FINRA.