Wayne von Borstel Suspended by FINRA
Wayne von Borstel (CRD #: 1419351), a broker formerly registered with LPL Financial, was recently suspended by FINRA, according to his BrokerCheck record, accessed on September 12, 2022. Investors may have also engaged his services through von Borstel Associates. If you have questions about his conduct as a broker, read on.
FINRA Suspension
On July 28, 2022, Wayne von Borstel consented to the entry of findings that he allegedly caused LPL Financial to keep inaccurate books and records by failing to correctly record the intended beneficiaries on new account forms for multiple 529 plan accounts between August 2016 and December 2017.
According to a Letter of Acceptance, Waiver & Consent (AWC), in June 2016, LPL Financial allegedly adopted a policy prohibiting clients from purchasing Class C shares in 529 plan accounts for young beneficiaries (12 years of age or younger) unless the firm granted an exception. This policy allegedly took effect in August 2016.
The AWC alleges that, from August 2016 through December 2017, ten of Wayne von Borstel’s clients closed approximately 20 529 plan Class C share accounts and opened new accounts of the same type.
Wayne von Borstel allegedly facilitated these new account openings, including completing required LPL Financial forms. The AWC alleges that he misidentified the beneficiaries for these accounts as the young beneficiaries’ adult relatives, instead of the young beneficiaries themselves.
The AWC concludes that these allegations constituted violations of MSRB Rule G-8.
MSRB Rule G-8
MSRB Rule G-8 requires firms to keep accurate and up-to-date books and records. MSRB Rule G-8(a)(xi)(F) specifically requires records of client information obtained in compliance with MSRB Rule G-19, including information about the beneficiary of a 529 plan account.
Sanctions
Wayne von Borstel consented to the following sanctions:
- $5,000 deferred fine
- 15-business-day suspension
His fine is deferred until (1) his reassociation with a FINRA member firm or (2) prior to any application/request for relief from any statutory disqualification resulting from this or another regulatory proceeding, whichever is earlier.
Wayne von Borstel was suspended from August 1 to August 19, 2022.
You can read the full AWC here.
Resignation from LPL Financial
On August 3, 2020, Wayne von Borstel was permitted to resign from LPL Financial after he allegedly failed to promptly report written customer complaints and failed to follow firm policy concerning the use of mutual fund C shares in 529 plans.
Background Information
Wayne von Borstel has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 31 – Futures Managed Funds Examination
- Series 2 – Non-Member General Securities Examination
- Series 7 – General Securities Representative Examination
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
- Series 24 – General Securities Principal Examination
He has also worked for LPL Financial (CRD#:6413) and Mony Securities Corporation (CRD#:4386).
Kurta Law Can Help
If you worked with Wayne von Borstel 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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