A former star LPL Financial adviser is claiming that LPL stole his clients in the wake of a rigged audit of his branch in September 2014 that led to his being fired.
According to reports, James “Jeb” Bashaw is seeking $30 million in an arbitration claim filed Tuesday with the Financial Industry Regulatory Authority Inc., naming both LPL and LPL’s CEO Mark Casady as respondents.
Mr. Bashaw’s branch in Houston controlled $750 million in assets prior to his termination.
According to the suit filed, LPL terminated Mr. Bashaw without notice “allegedly for violation of company policies.”
Mr. Brashaw is also allegedly that the language on his termination notice, which was made public on BrokerCheck, along with various press reports “hampered and delayed Mr. Bashaw’s ability to become registered with another broker-dealer and rendered him unable to earn an income.”
According to his BrokerCheck profile, Mr. Bashaw was fired by LPL for three reasons: (1) for participating in private securities transactions without disclosing them and getting approval from LPL; (2) borrowing from a client; and (3) doing business that created a potential conflict of interest without disclosing it and getting approval from LPL.
The suit also reportedly points to widespread compliance problems at LPL as the backdrop to the termination of Mr. Bashaw, who complained about LPL’s supervision and compliance.
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