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FINRA Bars Garrett Caplin Indefinitely

May 12, 2022 Barred Broker

Garrett Caplin (CRD #: 5968832), a former broker, was barred by FINRA, according to his BrokerCheck record, accessed on May 9, 2022. Read on if you want to learn more about Garrett Caplin’s conduct as a broker.

Bar by FINRA

An Acceptance, Waiver, and Consent, (AWC) agreement filed on March 15, 2022, alleges that Garrett Caplin failed to produce information and documents in connection with a FINRA investigation into Form U5 amendments filed by LPL Financial after his resignation.

According to the AWC, LPL Financial filed a Uniform Termination Notice for Securities Industry Registration (U5) on March 10, 2021, disclosing that Garrett Caplin had voluntarily resigned from the firm. On March 18, the firm filed an amendment to the form alleging that Caplin was under internal review involving his "due diligence efforts with respect to customer account opening."

On October 26, the firm filed another amendment noting the conclusion of the internal review and alleging that the investigation found "suspicious aspects of [a] note issuer were not escalated to Firm prior to bonds being transferred to Firm, and representative's diligence of end customer was not complete prior to the account opening and the receipt of the bonds."

The AWC concludes that Garrett Caplin's alleged failure to respond to FINRA requests for information violated FINRA Rules 8210 and 2010.

FINRA Rules 8210 and 2010

FINRA Rule 8210 defines the consequences of failing to provide books and testimony in connection with FINRA investigations. FINRA members first face a three-month suspension, which becomes a bar from associating with FINRA members if they do not request a termination of the suspension.

Violations of Rule 8210 are automatic violations of FINRA Rule 2010, which requires brokers to uphold high standards of commercial honor.

Sanctions

Garrett Caplin was indefinitely barred from FINRA starting March 15, 2022.

You can read the full AWC here.

Investor Dispute

In a dispute filed on July 21, 2020, a client alleged that Garrett Caplin failed to follow her instructions to not sell an investment she previously instructed to be sold on March 30, 2020. The client sought $70,000 in damages but the dispute was denied by the firm.

However, investors should know that firms can deny disputes without any external review. Investors can still pursue FINRA arbitration and potentially recover their losses following a denial.

FINRA Rule 5310

FINRA Rule 5310 requires brokers to conduct due diligence when seeking the best market for securities and to execute investors’ instructions promptly and correctly.

Background Information

Garrett Caplin has passed the following exams:

  • Series 66 - Uniform Combined State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

Previously, he worked for the following firms:

  • LPL Financial (CRD#:6413)
  • Wells Fargo Clearing Services (CRD#:19616)
  • Morgan Stanley (CRD#:149777)
  • AXA Advisors (CRD#:6627)

Kurta Law Can Help

If you worked with Garrett Caplin and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.