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.

Of particular note is The Huntington Investment Company’s case, which stands out due to its self-reporting and cooperation with the SEC. As a result, Huntington was ordered to pay a lower civil penalty compared to other firms, totaling $1.25 million. This demonstrates the importance of voluntary disclosure and cooperation in regulatory investigations.

The investigations uncovered widespread use of unapproved communication methods, such as personal text messages, across all sixteen firms. Employees at various levels, including supervisors and senior managers, were involved in these violations. The failure to maintain and preserve required records potentially deprived the SEC of crucial information in various investigations.

Each of the firms involved was charged with violating recordkeeping provisions of relevant securities laws and failing to reasonably supervise to prevent and detect such violations. In addition to the financial penalties, the firms were ordered to cease future violations, receive censures, and engage independent compliance consultants to review and enhance their policies and procedures.

Most securities brokerage firms and investment advisory firms prohibit texting between financial advisors and brokers and their customers because of the difficulty of supervising those communications. The reality is, however, that many brokers and advisors don’t follow these rules and often will send texts that can be used against them and their firms in related securities fraud actions. For this reason, customers who have been damaged by the wrongdoing of their advisors should take care to preserve all communications with their advisors including texts. If you believe you may have a claim against your financial advisor, broker, or their firm, please contact securities fraud attorney 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.

The AWC discussed the fact that Janney’s supervisory system red flagged these concentrations, but Janney “failed to take reasonable steps to understand the potential risks and rewards.”

In addition to being censured by FINRA, Janney was fined $100,000 and ordered to pay restitution to the customers that had not yet received restitution in the total amount of $145,019.

Concentration of customer accounts in one sector such as energy, or in multiple master limited partnerships (MLPs), can result in an unsuitable risk in customer accounts, and also may violate Regulation Best Interest (Reg BI). Firms such as Janney are required to have in place reasonable systems to supervise their advisors and accounts to attempt to prevent such violations.

If you have lost monies resulting from unsuitable overconcentration in a single sector, in oil and gas, or in unsuitable MLPs, we may be able to help. Please contact our securities fraud lawyers at Greco & Greco for a free attorney consultation.