Patrick Sloan Suspended by FINRA for Alleged Unauthorized Trading
Patrick Sloan (CRD #: 6466410), a broker formerly registered with LPL Financial, has been suspended by FINRA, according to his BrokerCheck record, accessed on March 28, 2023. If you want to know more about his alleged conduct as a broker, keep reading.
FINRA Suspension
On February 10, 2023, Patrick Sloan consented to the entry of findings that he allegedly falsified client signatures on seven documents from February through December 2020 and exercised discretion in client accounts without approval from September 2018 to February 2021.
According to a Letter of Acceptance, Waiver & Consent (AWC), Patrick Sloan allegedly electronically signed seven documents for five clients, with their permission. These documents allegedly consisted of account applications, an account transfer form, a move money form, and an opt-in for electronic prospectuses and shareholder communications.
LPL Financial’s policies and procedures during this time allegedly prohibited brokers from signing clients’ names or initials regardless of their consent.
Further, in December 2020, Patrick Sloan allegedly falsely attested on a firm compliance questionnaire that he had not signed or affixed any clients’ signatures on any documents.
Alleged Unauthorized Use of Discretion
The AWC alleges that, from September 2018 to February 2021, Patrick Sloan executed approximately 70 discretionary trades in the accounts of four clients.
These trades were allegedly in accordance with the clients’ agreed-upon investment strategy, but the AWC alleges that the clients had not provided written authorization for these trades. LPL Financial allegedly also did not approve these accounts for discretionary trading.
Again, Patrick Sloan allegedly falsely stated on compliance questionnaires from 2018-2020 that he had not exercised discretionary authority in any client accounts.
The AWC concludes that these allegations constituted violations of NASD Rule 2510(b) and FINRA Rules 4511, 2010, and 3260(b).
FINRA Rule 4511
FINRA Rule 4511 requires that firms maintain accurate books and records.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
FINRA Rule 3260
FINRA Rule 3260 restricts brokers from exercising their trading discretion beyond pre-approved discretionary accounts. These accounts must be approved for discretionary trading by both the client and the firm.
Sanctions
Patrick Sloan consented to the following sanctions:
- $10,000 fine
- 3-month suspension
His suspension began on February 21, 2023, and will end on May 20, 2023.
You can read a copy of the AWC here.
Termination from LPL Financial
On February 18, 2021, Patrick Sloan was fired from LPL Financial after allegedly using discretion in clients’ accounts without authorization and electronically signing account documents on behalf of clients.
Background Information
Patrick Sloan has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
He has also worked for LPL Financial (CRD#:6413) and Investment Centers of America (CRD#:16443).
Kurta Law Can Help
If you worked with Patrick Sloan 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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