WARNING! Paul Lebel of Cambridge, Massachusetts Sued by SEC for Churning
Have you lost money with financial advisor Paul Lebel of Cambridge, Massachusetts? We are investigating allegations made by the Securities and Exchange Commission (SEC) against Paul T. Lebel, a former advisor at LPL Financial. The SEC filed a complaint against Paul Lebel, alleging that he churned or excessively traded customers’ accounts.
The SEC alleged that Paul Lebel traded Class A share mutual funds, which typically carry front-end sales charges. “A” shares of mutual funds typically have upfront commissions of 2% to 5%, and Lebel was recommending that his clients make at short-term purchases of Class A share mutual funds. As such, these clients were paying 2% to 5% commissions on a short-term basis, and the SEC alleged that this was excessive and unsuitable. The SEC alleged that Lebel earned over $50,000 in commissions from this conduct. The SEC barred Lebel from the securities industry and ordered him to disgorge the commissions.
Paul Lebel was a financial advisor and registered representative of LPL Financial from August 2008 to November 2014. He worked out of his home in Cambridge, Massachusetts. Lebel’s BrokerCheck report discloses that he has eight tax liens on his record, totaling over $100,000. Based on the tax liens, it is unlikely that Lebel will ever repay the $50,000 disgorgement.
Brokerage firms like LPL Financial have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado, the Seattle area, Chicago, Illinois, and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states, including numerous investors in Massachusetts in the past. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including LPL Financial.
Click to view: Paul Lebel SEC Order
Click to view: Paul Lebel BrokerCheck 10.19.16
HAVE YOU LOST MONEY WITH PAUL LEBEL OR LPL FINANCIAL?
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Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.