{"id":21551,"date":"2024-03-15T21:27:08","date_gmt":"2024-03-15T21:27:08","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/03\/15\/advisor-accuses-lpl-of-raiding-his-firm-in-retaliation\/"},"modified":"2024-03-15T21:27:08","modified_gmt":"2024-03-15T21:27:08","slug":"advisor-accuses-lpl-of-raiding-his-firm-in-retaliation","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/03\/15\/advisor-accuses-lpl-of-raiding-his-firm-in-retaliation\/","title":{"rendered":"Advisor Accuses LPL of &#8216;Raiding&#8217; His Firm in Retaliation"},"content":{"rendered":"<div class=\"media_block\"><a href=\"https:\/\/feeds.feedblitz.com\/-\/873710603\/0\/thinkadvisor\/\"><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2024\/01\/2024-1-31-courtroom_Adobe-Stock_640x640_vacharapong.jpg\" class=\"media_thumbnail\"><\/a><\/div>\n<div><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2024\/01\/2024-1-31-courtroom_Adobe-Stock_640x640_vacharapong.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<div class=\"the-advisor bullet-summary\">\n<h3>What You Need to Know<\/h3>\n<ul>\n<li>The lawsuit claims that the financial services company induced three advisors to take clients upon departing.<\/li>\n<li>Assets under management went to $0 overnight when the advisors left, the complaint contends.<\/li>\n<\/ul>\n<\/div>\n<p id=\"first-para\"><span>A Kentucky wealth manager has accused LPL Financial of running a \u201cclassic corporate raid\u201d against his firm, which had been an LPL affiliate for years, to retaliate when he sought to find a new broker-dealer and the relationship soured.<\/span><\/p>\n<p><span>In a case recently moved from state to federal court in Kentucky, Lamkin Wealth Management and Louisville Wealth Management (referred to together&nbsp;as LWM) seek redress for what&nbsp;they call LPL\u2019s \u201cimproper, illegal and unjustified actions\u201d against the firm.<\/span><\/p>\n<p><span>\u201cSimply put, LPL orchestrated, assisted and executed a classic corporate raid against LWM, its own affiliate, by the actions of three of LWM\u2019s employees, who were at the time also affiliated with LPL,\u201d the <a href=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/documents\/415\/lplcomplaint.pdf\" target=\"_blank\" rel=\"noopener\">suit<\/a> contends.<\/span><\/p>\n<p><span>LWM had over $451 million in client assets under management on Dec. 5, 2018, when three LWM financial advisors left without notice and took client files with them, according to the suit, and was left with zero AUM the next day.<\/span><\/p>\n<p><span>LPL induced the three to leave \u201cen masse, in the middle of the night,\u201d despite the advisors\u2019 assurances that they would stay with the firm, according to the lawsuit.<\/span><\/p>\n<p><span>Principal Mark Lamkin could have sold the firm that summer for $8 million to $10 million based on its book of business, the suit contends.<\/span><\/p>\n<p><span>LWM and Lamkin were affiliated with LPL from early 2001 until late 2018, using LPL\u2019s platform and technology to manage client relationships, trades and accounts, the suit&nbsp;states.<\/span><\/p>\n<p><span>The suit contends that in 2017, Lamkin and his firm started to question the affiliation with LPL over concerns arising from how&nbsp;the independent broker-dealer&nbsp;handled compliance issues in transactions for clients of a particular LWM advisor.<\/span><\/p>\n<p><span>The situation was so problematic that Lamkin helped the clients in their efforts to be made whole, according to the lawsuit. Lamkin\u2019s actions \u201ccreated bad blood between LPL and LWM such that LWM became a target for LPL to seek to destroy and take over LWM and Lamkin\u2019s business,\u201d the complaint says.<\/span><\/p>\n<p><span>When Lamkin and LWM started looking for another broker-dealer, LPL retaliated by launching a \u201csystematic, wrongful and intentional\u201d effort to damage them, including conspiring with three other LWM advisors \u2014 Bruce Lindsay, Jonathan Upton and Gregory Smith \u2014 to steal clients from the firm, the lawsuit alleges. (LWM had purchased Lindsay\u2019s firm for $541,000 in 2015, the suit says.)<\/span><\/p>\n<p><span>In addition, LPL engaged in a \u201cwitch hunt-type\u201d probe of Lamkin and prompted the advisors to \u201csteal clients\u201d by causing them to fear that their livelihoods would be in jeopardy if they stayed with Lamkin\u2019s firm, according to the lawsuit.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What You Need to Know The lawsuit claims that the financial services company induced three advisors to take clients upon departing. Assets under management went to $0 overnight when the advisors left, the complaint&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":21552,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/03\/advisor-accuses-lpl-of-raiding-his-firm-in-retaliation.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21551"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=21551"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/21552"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=21551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=21551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=21551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}