Paul Richard McGonigle, Formerly of LPL Financial, Indicted on Fraud and Money Laundering Charges

INVESTORS: Former LPL Financial broker Paul Richard McGonigle was indicted on one count of fraud and two counts of money laundering.

Paul Richard McGonigle (CRD: 1220690) was registered as a broker with LPL Financial from 2018 until 2019. Previously, McGonigle was registered with SII Investments from 1998 until 2018. On June 9, 2021, McGonigle was arrested and charged with defrauding clients and stealing their retirement assets, according to a press release by the United States Attorney’s Office for the District of Massachusetts. McGonigle was charged in a superseding indictment with one count of investment adviser fraud and two counts of money laundering.

McGonigle is accused of making unauthorized withdrawals from the victims’ annuities and inducing the victims to give him money to invest on their behalf, which he then used for personal and business expenses. The misconduct purportedly began in July of 2018. To maintain his scheme, McGonigle allegedly called the annuity companies posing to be the victims and forged the victims’ names on forms requesting withdrawals.

McGonigle is facing three counts of wire fraud and one count of mail fraud, each count carrying a potential sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss from the offense, whichever amount is greater. McGonigle is also charged with one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison, up to one year of supervised release, and a fine of $250,000 or twice the gross gain or loss from the offense, whichever is greater.

McGonigle has two disclosures on his BrokerCheck report.

August 2020 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Respondent McGonigle failed to respond to FINRA request for information.

Resolution: Order

Sanctions: Bar

Registration Capacities Affected: All capacities

Duration: Indefinite

Start Date: 11/16/2020

Regulator Statement: On September 8, 2020, in response to FINRA’s Notice of Suspension Letter dated August 12, 2020, McGonigle emailed a request for hearing to the Office of Hearing Officers (“OHO”). On October 15, 2020, McGonigle was ordered to file a supplement to his hearing request to set forth with specificity any and all defenses to the FINRA action as required by FINRA Rule 9552(e) no later than October 22, 2020. McGonigle did not file a supplement and the proceeding before the OHO was dismissed on October 23, 2020. On October 26, 2020, McGonigle made a request to reopen the OHO proceeding. On November 5, 2020, McGonigle was ordered to file, by November 10, 2020, a written statement establishing good cause as to why this expedited matter should be reopened. McGonigle did not file a written statement and on November 12, 2020, his request to reopen the expedited matter was denied. The Notice of Suspension dated August 12, 2020 remains FINRA’s final action. Pursuant to Rule 9552(h), absent a request to terminate the suspension within three months of the issuance of the original notice of suspension, McGonigle will automatically be barred on November 16, 2020. McGonigle failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities on November 16, 2020.

January 2007 Customer Dispute

Status: Settled

Allegations: Client alleges excessive trading and churning; unsuitable purchasing and surrendering of annuity products including fixed and variable and unsuitable trading of mutual funds including Class B beginning on May of 2000.

Damage Amount Requested: $648,000.00

Settlement Amount: $247,500.00

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Paul Richard McGonigle. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.