The Brokercheck Report further states that LPL Financial “Discharged” Mr. Tunink for “Failed to disclose and receive prior approval for loans from customers; and settled a customer complaint away from the Firm.” Mr. Tunink had been registered with LPL as a securities representative from 2021 to September 2025, and previously was registered with Avantax Investment Services from 1996 to 2021.

Financial advisors who are registered with FINRA are generally prohibited from taking loans from their customers pursuant to FINRA Rule 3240. The limited exceptions in the rule include loans from family members, loans from financial institutions, and the borrowing or lending arrangement is based on a bona fide business relationship outside of the broker-customer relationship. However, even in those limited exceptions, the representative’s FINRA firm must be notified of the loan and approve the loan.

The Securities Fraud lawyers at Greco & Greco have decades of experience representing harmed investors from across the country for claims related to improper loans and broker theft, as well as claims for suitability, securities fraud, failure to supervise, negligence, violations of Regulation Best Interest, and breach of fiduciary duty. If you have had your trusted investment advisor solicit a loan from you or otherwise wrongfully take control of your funds and savings, please contact Scott Greco for a free attorney consultation.

Background: LPL Financial LLC

LPL Financial LLC, a long-standing member of FINRA since 1973, operates as a significant player in the securities industry and is one of the larger “independent” FINRA firms. Headquartered in Fort Mill, South Carolina, LPL boasts a considerable network, with over 27,000 registered representatives across more than 18,000 branch offices. Most advisors who are registered with independent firms operate out of small one or two advisor offices. Although independent firms have the same supervisory duties and more traditional firms with big branch offices, proper supervision does not always occur.

Overview of Allegations

The allegations against LPL Financial LLC span a significant timeframe, from January 2012 to November 2022. Among the key alleged violations cited by FINRA include the firm’s failure to reasonably supervise transactions conducted directly with product sponsors on behalf of customers. This lack of oversight led to approximately 830,000 transactions not being reported, raising concerns about potential sales practice violations and unsuitable recommendations.

Moreover, LPL’s shortcomings extended to inaccurate information provided to customers regarding switch transactions, where approximately 11,300 letters were found to contain misleading fee information. This negligence in supervision and communication not only violated FINRA rules but also compromised the interests of customers.

Furthermore, the firm failed to establish a proper supervisory system for recommendations involving publicly traded securities of business development companies (BDCs which are considered “alternative” investments), leading to potential overconcentration in Listed BDC investments for certain customers. The AWC stated: “LPL also failed to have a reasonable supervisory system to ensure the collection of information for its direct business customers’ investment profiles—such as the customers’ ages, investment time horizons, and liquidity needs—that was relevant for making suitability determinations. LPL relied on its representatives to collect such information by completing new account forms for direct business transactions. However, the firm did not take steps to ensure that representatives completed the new account forms.”

Consequences and Sanctions

In response to these violations, LPL Financial LLC has consented to several sanctions imposed by FINRA, including a censure, a substantial fine of $5.5 million, and restitution totaling $651,374.51 plus interest. Additionally, the firm is required to undertake remedial actions within a specified timeframe to address the identified issues and ensure compliance with regulatory standards.

Contact a Securities Fraud Lawyer if you may have a claim.

If you think you may have a potential claim for unsuitable investments or failure to supervise against a financial advisory firm such as LPL, please contact Scott Greco for a free attorney consultation about your case.