According to financial-planning.com, Blake Richards, the former LPL adviser who was ordered to return nearly $2 million to investors and fined $80,000 by a federal judge in Georgia, is now under internal review by the Securities and Exchange Commission. “In its administrative case, the SEC is seeking to determine whether, in fact, Richards committed the fraud and misappropriation the commission described, and, if so, what remedial action should be taken.”
Allegedly, Richards misappropriated funds from client retirement savings or payouts from life insurance polices. Richards is accused of instructing clients to make payments to the entities Blake Richards Investments or BMO Investments and than pocketing much of the funds.
Brokerage firms, like LPL Financial, have a responsibility to adequately supervise their employees. If a broker misleads their clients and siphons funds from client accounts, the brokerage firm may be liable for negligent supervision and liable for investment losses.
Investors that were swindled by Blake Richards should consider filing a FINRA dispute resolution claim to recover their investment losses.
If you invested with Blake Richards and would like to speak to a securities attorney about your litigation options, please call our Chicago office at 312-238-9650 for a free consultation.
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 Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.