The Financial Industry Regulatory Authority has fined a former LPL Financial rep $5,000 and suspended him for 45 days for serving as a member of a board of directors and treasurer for a for-profit company while at LPL.
Between January 2023 and June 2024, while registered with FINRA through an association with LPL Financial, James Robert Ptacek Jr. failed to provide prior written notice to LPL about the outside business activity, violating FINRA Rules 3270 and 2010, FINRA's order states.
Ptacek was registered as a general securities representative with LPL from February 2018 until Nov. 14, 2024, when the firm filed a Form U5 stating that it had discharged Ptacek for failing to report and receive prior approval for certain outside business activities.
While registered with LPL, "Ptacek was a member of the board of directors and the treasurer for a streaming platform that was organized as a for-profit limited liability company," the order states.
"In these roles, Ptacek was involved with the company's finances and communicated with certain LPL customers who had invested in the company," the order continues.
"Ptacek's involvement in this business activity was outside the scope of his relationship with LPL, and Ptacek did not provide prior written notice to LPL of the outside business activity," FINRA said.
He also falsely attested in at least one compliance questionnaire that he was not involved with any undisclosed outside business activities.
Ptacek consented to FINRA's findings without admitting or denying them.
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