Paul Lebel, a broker formerly with LPL Financial from 2008 to 2014, was barred by the SEC for churning and excessively trading mutual funds in customer accounts and generating excess fees.
According to the SEC administrative proceeding, Lebel “defrauded four customers by churning several of their accounts. In particular, Lebel exercised de facto control over these customers’ accounts and excessively traded mutual fund shares which carry large front-end load fees.”
According to the commission, Paul Lebel bought and sold mutual fund A shares, which are meant to be long-term, buy-and-hold investments, generating $50,000 in commissions. Lebel will pay $56,500 as part of the settlement.
“Lebel’s excessive trading was inconsistent with the customers’ investment objectives, and willfully disregarded the customers’ interest,” according to the SEC. “From August 2008 through August 2014, Lebel executed numerous mutual fund A share trades that, in light of Lebel’s customers investment objectives, were fraudulent, made to the detriment of Lebel’s customers, and without justification other than the generation of commissions for Lebel.”If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.