The Financial Industry Regulatory Authority Inc. (FINRA) has barred Jim Booth from LPL Financial who cheated clients out of more than $1 million for a period of five years. Haselkorn & Thibaut, investment fraud lawyers, have begun a formal investigation into Mr. Booth and are following several other LPL Financial complaints.
Booth was a former employee of Invest Financial Corp. from 2005 until February 2018 but joined LPL Financial in February 2018 after the latter acquired the former. Before his employment in Invest, he worked with Caderet, Garet & Co., all of Norwalk, and CT, according to his BrokerCheck record.
History of LPL Financial Complaints and Jim Booth
In a statement released by FINRA, Booth was accused of collecting money from different customers for the period of five years with the promise of investing it on their behalf, which he never did.
Instead, he accumulated the money in his personal account and converted it for his personal use. This is, however, a violation of FINRA’s Rule 2150(a) and 2010.
Booth became a FINRA certified broker in 1988 when he registered with a FINRA member firm in the same year. His BrokerCheck report revealed he was accused of misappropriating $27,000 out of a client’s life insurance policy without informing the client. The allegation was dismissed.
While working with Cadaret, Grant & Co., another client complaint outrageous advisory fees charged by Booth, requesting damages of $23,500,000. The case was never pursued just as the first ― such was the case with many other clients that present allegation of his fund misappropriation.
Prior to the FINRA action, Booth’s employer, LPL, sought the assistance of the Financial Industry Regulatory Authority Inc., to help investigate the complaint of four different customers against him. He was found guilty and thereby fired by LPL in May.
Booth admitted to all the charges he was accused of and has not registered with a new firm since he was fired by LPL. Although Booth is longer associated with any FINRA member firm, he is still subject to the self-controlled Authority (FINRA) jurisdiction as stated in Article 5, Section 4.
Invest Financial Corp. was a company founded in 1982 by Dan McConnell. Before its acquisition by LPL, the company’s 1,200 Advisers controlled its $24 billion in assets. It was acquired by LPL along with three other broker-dealer companies owned by National Planning Holdings, Inc. ― Investment Centers of America, National Planning Corporation and SII Investments incorporations ― for $325 million.
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