The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Arthur Obermeier from the securities industry for 60 days and fined him $5,000. Mr. Obermeier’s sanctions arise from his execution of trades without his customers’ authorization or consent.
Arthur Obermeier was registered with LPL Financial LLC in Boulder, Colorado, from June 2002 until his employment was terminated in May 2019. LPL Financial LLC fired Mr. Obermeier, alleging that he exercised discretion in clients’ accounts without authorization.
If you have suffered financial losses investing with Arthur Obermeier or suspect that Mr. Obermeier executed trades in your account without authorization, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation.
Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as LPL Financial LLC.
FINRA Letter of Acceptance, Waiver, and Consent No. 2019062711601
Arthur Obermeier and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on January 11, 2021, over allegations related to Mr. Obermeier’s conduct between January 2019 and March 2019. Specifically, FINRA alleged:
- From January to March 2019, Mr. Obermeier executed six trades with a total principal value of approximately $798,000 in the accounts of two of his LPL Financial LLC customers.
- Mr. Obermeier executed these trades without first discussing with and obtaining authorization or consent for the trades from his customers.
- Specifically, in January 2019, Mr. Obermeier executed two sales with a total principal value of approximately $150,000 in a customer’s account.
- In March 2019, Mr. Obermeier executed two purchases with a total principal value of approximately $324,000 in the same customer’s account.
- He also executed two purchases with a total principal value of approximately $324,000 in a second customer’s account.
In non-discretionary accounts, customers retain discretion, and brokers must always obtain their customer’s permission before placing a trade. You can read more about unauthorized trading in the context of both discretionary and non-discretionary accounts here: Unauthorized Trading.
LPL Financial LLC – A Duty to Supervise
Financial institutions, like LPL Financial LLC, must properly supervise financial advisors and customer accounts. Brokerage firms are required to establish and maintain a reasonably designed system to oversee account activity, such as the improper use of discretion, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you have lost money or have been harmed by Arthur Obermeier or LPL Financial LLC, contact New York securities arbitration lawyer August Iorio of Iorio Altamirano LLP at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.