November 28, 2011 Comments (0) Blog, Securities Fraud

LPL Financial Fined for Failure to Supervise Former Broker Jack Kleck

(Last Updated On: July 17, 2015)

According to the investmentnews.com Oregon regulators in charge of securities have fined LPL Financial LLC $100,000 “for failing to supervise a broker that sold high-risk oil and gas partnerships to clients, including many who are elderly.” The former LPL Financial representative, Jack Kleck, reportedly sold “nearly 3 dozen” oil and gas partnerships to clients which regulators said were investments that were not “suitable for the clients, given their age and investment objectives.”

According to the investmentnews.com Jack Kleck was a broker associated with LPL Financial “from 2000 to 2006, when he voluntarily resigned…” Oregon officials reported that among the clients that he sold investments to was “an 89-year-old client who Mr. Kleck described as “mentally lost” and “confused.” It has been reported that many of Kleck’s clients were over 70 and that “…some were not capable, due to poor health, of making sound investment decisions…”

For their part, LPL Financial has been accused of violating “several securities laws, including failing to supervise the actions of Mr. Kleck and failing to ensure that company policies and procedures were enforced.” Monitoring and regulating independent brokers, like LPL’s roughly 12,800 representatives, has been a growing concern for regulators and brokerage firms alike. Oregon regulators did note that LPL “has taken numerous steps to improve its compliance and supervisory practices.”

If you are concerned about investments you made with John Kleck, LPL Financial or another FINRA registered brokerage firm and would like to speak to a securities attorney about your potential to recover investment losses please contact our Chicago office at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

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