An advisor previously affiliated with LPL Monetary claims the agency stole his enterprise from underneath him, allegedly bringing his managed property from about $450 million to zero in a single day.
Mark Lamkin filed a go well with in Kentucky state courtroom that was bumped as much as federal courtroom this week, naming his agency, Lamkin Wealth Administration, because the plaintiff in opposition to the large unbiased dealer/seller.
“Merely put, LPL orchestrated, assisted and executed a basic company raid in opposition to LWM, its personal affiliate, by the actions of three of LWM’s staff, who had been on the time additionally affiliated with LPL,” the criticism learn.
LWM supplied monetary providers together with wealth, property and danger administration planning for shoppers, and was affiliated with LPL beginning in February 2001. This association meant LPL was “initimately aware of almost each facet of LWM’s enterprise,” in line with Lamkin’s go well with.
In 2008, LWM employed Jonathan Upton as a monetary advisor and introduced on Gregory Smith in the identical function in 2012. The agency added Bruce Lindsay and his ebook of enterprise in 2015. All three staff allegedly signing non-compete, non-solicitation and commerce secrets and techniques agreements.
However beginning in 2017, Lamkin started to get chilly toes about LPL, notably after the IBD dealt with compliance points with LWM advisor Don Woods. FINRA ultimately fined Woods $10,000 and suspended him for six months for inflating clients’ internet value on functions for actual property funding trusts.
Lamkin stated the ordeal created a lot unhealthy blood between him and LPL that he started searching for a brand new dealer/seller companion in late 2017.
However Lamkin claimed LPL started working with Lindsay, Smith and Upton behind his again, “creating an environment of worry and intimidation at LWM together with inflicting Lindsay, Smith and Upton to worry that their livelihoods had been in jeopardy” in the event that they didn’t depart LWM and steal its shoppers, in line with the criticism.
The criticism additionally alleges that Lindsay, Upton and Smith “falsely assured” him they might keep on board till LWM switched dealer/sellers, all of the whereas accessing and downloading consumer info with LPL’s course and help.
In August 2018, LPL terminated its affiliation with Lamkin, although the three advisors allegedly claimed they’d stay with LWM till Lamkin discovered a brand new b/d affiliate. However, Lamkin argued, LPL reached out to the trio, telling them “they wanted to get out of LWM, that they wanted (and had been extremely inspired) to take consumer recordsdata from LWM, and that they wanted to disassociate from LWM” as quickly as doable, in line with the go well with.
On Dec. 5, 2018, the three advisors and their shoppers left LPL, allegedly with out advance discover. Based on the criticism, the transfer dropped LWM’s complete property underneath administration from greater than $451 million to zero in a single day.
Lamkin additionally accused LPL of making an attempt to smear him with inside investigations, together with one centered on a $1.26 million mortgage from a buyer.
The case ultimately ended up with FINRA, who discovered Lamkin had taken the mortgage with out notifying LPL in violation of FINRA guidelines. Lamkin agreed to a $7,500 positive and 90-day suspension. Lamkin has been affiliated with Calton & Associates since 2018, in line with his BrokerCheck profile.
Lamkin is looking for $10 million in compensatory damages within the go well with, arguing that he would have offered his agency’s ebook of enterprise in 2018 with out the reassurances from Lindsay, Smith and Upton that they’d keep onboard via any transition.
Neither LPL nor attorneys for Lamkin Wealth Administration returned requests for remark previous to publication.