Investigation: Charles Fackrell, Former LPL Financial Broker & Convicted Ponzi Scheme Felon

The Sonn Law Group is currently investigating former LPL Financial advisor, and current convicted felon, Charles Caleb Fackrell, broker CRD #5369665. We are interested in speaking with any individual who has ever invested with Fackrell, as the broker as an extensive history of illegal activitiy.

Financial-Planning.com recently reported that LPL Financial – Fackrell’s former employer – has been ordered to pay $462,000 to his former clients after he pleaded guilty to a $1.4 million Ponzi scheme. According to the publication, this brings the total payout burden on LPL Financial relating to Fackrell to $1.9 million.

If you’ve ever worked with Charles Fackrell contact us now to discuss your experience with a qualified securities fraud attorney. We will listen to the details of your experience, ask relevant questions, and tell you whether you may have a valid claim to recover compensation for losses.

To give investors a sense of the extent of Fackrell’s misconduct, below we’ve recapped each of the 15 disclosures* on Fackrell’s BrokerCheck profile since 2014

*Disclosure is defined by FINRA as any customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and any civil or criminal proceedings that [the broker] was a part of.

History of FINRA Disclosures for Charles Fackrell, Former LPL Broker

11.21.16 – Customer Dispute
Allegations: Claimants allege selling away, forgery, unsuitability and misrepresentation. Activity period June 2010 to December 2014.
Status: Pending

06.10.16 – Customer Dispute
Allegations: Claimants allege unsuitability, misrepresentation, excessive and unauthorized trading, and use of client funds for his personal benefit. Activity period August 2010 to December 2014.
Status: Settled
Settlement Amount: $60,000.00

03.24.16 – Customer Dispute
Allegations: Claimants alleges selling away, unsuitability and misrepresentation. Activity period June 2010 to December 2014.
Status: Settled
Settlement Amount: $293,578.52

03.24.16 – Criminal Charges
Charges: Securities Fraud
Status: Pending Charge
Disposition: Pled guilty

02.16.16 – Customer Dispute
Allegations: Claimants allege selling away, forgery, unsuitability and misrepresentation. Activity period June 2010 to December 2014.
Status: Pending

01.19.16 – Customer Dispute
Allegations: Claimant alleges unauthorized trading and unsuitability of investments.
Status: Settled
Settlement Amount: $18,500.00

08.18.15 – Customer Dispute
Allegations: Charles Fackrell was a subject of the customers’ complaint against his member firm that asserted the following causes of action: breach of contract, negligence, failure to supervise, misrepresentation, fraud and breach of fiduciary duty, violation of the North Carolina Securities Act, principal/agent liability, and negligent retention of an agent.
Status: Award/Judgement

07.09.15 – Customer Dispute
Allegations: Charles Fackrell was a subject of the customers’ complaint against his member firm that asserted the following causes of action: negligence, failure to supervise, negligent misrepresentation, breach of fiduciary duty, violation of the North Carolina Securities Act, breach of contract, principal/agent liability, and negligent retention of an agent.
Status: Award / Judgement
Damage Amount Requested: $1,371,011.29

06.02.15 – Customer Dispute
Allegations: Customer alleges that the investments in the account were unsuitable.
Status: Closed – No Action
Damage Amount Requested: $10,235.00

06.01.16 – Customer Dispute
Allegations: Violation of securities regulatory requirements; breach of fiduciary duties; violation of the Washington State Securities Act and the Utah Uniform Securities Act; negligence; negligent supervision; violation of the Washington Consumer Protection Act
Status: Award / Judgement
Damage Amount Requested: $67,966.46

02.26.15 – Regulatory Action
Initiated By: FINRA
Allegations: Without admitting or denying the findings, Fackrell consented to the sanction and to the entry of findings that he failed to provide documents and information as requested by FINRA. The findings stated that during the course of an investigation into allegations that Fackrell converted customer’s funds and sold private securities offerings away from his member firm firm without the firm’s knowledge or approval, FINRA requested that Fackrell provide documents and information. As stated in Fackrell’s phone call with FINRA, and by the AWC agreement, he acknowledges receipt of FINRA’s request and informed FINRA that he would not cooperate with FINRA’s investigation.
Resolution: Acceptance, Waiver & Consent(AWC)
Sanctions: Bar

02.20.15 – Customer Dispute
Allegations: Customer alleges misrepresentation.
Status: Closed-No Action

12.08.14 – Criminal Charges
Charges: Obtain property by false pretense
Status: Pending Charge

12.08.14 – Customer Dispute
Allegations: Customers allege unsuitability and poor performance of investments in their accounts. Customers also allege that the fa placed them in an investment unapproved by LPL.
Damage Amount Requested: $170,000.00
Status: Closed-No Action

12.05.14 – Employment Separation After Allegations
Firm Name: LPL Financial LLC
Termination Type: Discharged
Allegations: Representative terminated based on (a) allegations of participation in unapproved private securities transactions and (b) felony arrest for obtaining property under false pretenses.

If you were a client of LPL Financial or Fackrell, and have suffered investment losses or financial irregularities or invested in promissory notes or limited partnership agreements, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 305.912.3000 or contact us online now.