Securities Arbitration Lawyer Blog
**Update: June 2, 2021** The Securities and Exchange Commission (“SEC”) has charged James Couture with defrauding investors. The former LPL Financial broker-dealer and investment advisor allegedly defrauded his clients for about $2.9 million. According to the SEC’s complaint, from approximately 2009 to December 2019, Mr. Couture, while operating an investment advisory and brokerage business, fraudulently prompted his advisory clients to sell portions of their securities holdings in order to fund large money transfers to an entity (Legacy Financial Group LLC) that, unbeknownst to his clients, Couture owned and controlled. The SEC alleges that Mr. Couture inappropriately obtained his client’s authorization for the transactions by falsely claiming that the proceeds would be reinvested for the clients’ financial benefit. In reality, Mr. Couture’s alleged purpose in arranging these transactions was to divert the sale proceeds for his own benefit. A portion of the money was used to buy a book of advisory clients from another investment advisor representative.
Mr. Couture, 42, of Sutton, Massachusetts, is also facing criminal charges in a parallel action announced by the U.S. Attorney’s Office for the District of Massachusetts.
Mr. Couture owned the Private Wealth Management Group, which provided investment advisory services and sold insurance. According to the SEC, the business was not registered with the SEC or any state regulator.
Investors who were misled by Mr. Couture should contact securities litigation law firm Iorio Altamirano LLP for a free and confidential review of their legal rights.
Original Post:
James Couture, Former LPL Financial Broker, BARRED by FINRA – Worcester, MA
FINRA has permanently barred financial advisor James Couture (CRD#: 4406284) for violations related to his employment at LPL Financial. He was registered with LPL Financial (“LPL”) between February 27, 2009 and July 16, 2020.
LPL terminated Couture’s employment in July 2020. Couture and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) over allegations that formed the basis of Couture’s termination. Specifically, that while at LPL Financial, he engaged in the following misconduct:
- Couture altered identifying information, including account balances and distributions in customer account statement;
- Couture maintained commingled customer funds; and
- Couture used an unapproved email address.
The allegations were originally included in Couture’s Form U5 and led to the FINRA investigation. Form U5 is the Uniform Termination Notice for Securities Industry Registration which broker-dealers, investment advisers, or issuers of securities must use to terminate the registration of an individual. As part of the October 21, 2020 AWC, Couture consented to being barred from the securities industry.
FINRA indicated that, in the course of its investigation, after issuing a third request for the production of documents and information from Couture, he declined to produce the remaining documentation. Couture’s refusal to provide a complete production of documents and information violated FINRA Rules 8210 and 2010.
FINRA rule 8210 requires brokers under FINRA jurisdiction to provide information and to testify if requested, with respect to any matter involved in a FINRA investigation.
FINRA rule 2010 requires brokers to observe high standards of commercial honor.
It is unclear how many customers were affected by Couture’s actions. He was a financial advisor and registered representative at the following firms:
- Lincoln Financial Securities Corporation, Worcester, MA (February 2006 to February 2009);
- New England Securities, New York, NY (August 2002 to March 2006); and
- Morgan Stanley DW Inc., Purchase, NY (July 2001 – July 2002).
Brokerage firms like LPL Financial must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to supervise account activity to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to adequately supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers. Investors who may have been harmed by Couture’s actions may have a claim against LPL Financial.
Earlier this year, FINRA announced that it had banned more than 730 brokers in the last two years for misconduct. Our firm is currently investigating Cynthia Cowden, another stockbroker who was recently barred from the securities industry by FINRA.
If you have lost money with former LPL Financial broker James Couture, contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at jorge@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. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.