FINRA Bars Ex-LPL Broker Who Allegedly Took an Older Client’s Funds

A former LPL Financial broker who allegedly converted a senior client’s funds has been barred by the Financial Industry Regulatory Authority from associating with any FINRA member firm in all capacities after he refused to cooperate with the industry self-regulator’s investigation into his actions at LPL.

Without admitting or denying the findings of FINRA’s investigation, Eric Shea Hollifield signed a FINRA letter of acceptance, waiver and consent on Sept. 29 in which he consented to be barred from the industry. FINRA signed the letter on Thursday, agreeing to settle the charges.

Few details were provided in the AWC letter about Hollifield’s alleged theft from his client.

But a disclosure on Hollifield’s report at FINRA’s BrokerCheck website says there was a client dispute in which “the customer alleges that registered representative misappropriated funds from her account” between August 2020 and his termination from LPL on Aug. 12 for allegedly failing to disclose outside business activity to the firm. The client requested damages of $1.24 million, and the dispute was still pending.

On Sept. 10, LPL filed a Form U5 Termination Notice ending Hollifield’s association with the firm for allegedly failing to disclose outside activity to the firm, according to FINRA.

LPL did not immediately respond to a request for comment on Friday about its former broker being barred.

After leaving LPL, Hollifield became associated with Hamilton Investment Counsel but was terminated due to allegedly failing to disclose outside activity to the firm, according to FINRA.