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Karl Chen Fired from LPL Financial Following Alleged Unauthorized Transactions

Dec 16, 2022 Fired Brokers

Karl Chen (CRD #: 6424082), a broker formerly registered with LPL Financial, allegedly executed unauthorized transactions, according to his BrokerCheck record, accessed on December 14, 2022. Keep reading if you have questions about his alleged conduct as a broker.

Termination from LPL Financial

On October 28, 2022, Karl Chen was fired from LPL Financial after allegedly executing transactions in client accounts without valid written authorization.

FINRA Rule 3260

FINRA Rule 3260 restricts brokers from exercising their trading discretion outside pre-approved discretionary accounts. These accounts must be approved for discretionary trading by both the client and the firm.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade. Violations of FINRA Rule 3260 are also violations of FINRA Rule 2010. 

Tax Lien

On April 20, 2022, Karl Chen was subject of a tax lien of $121,600.

Background Information

Karl Chen has passed the following exams:

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

He previously worked for the following firms:

  • LPL Financial (CRD#:6413)
  • Waddell & Reed (CRD#:866)
  • Ameriprise Financial Services (CRD#:6363)

Kurta Law Can Help

If you worked with Karl Chen 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. 

 

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