- October 20, 2023
- LPL Financial
Mark Gillelen (CRD#: 1868626) is a registered broker and Investment Advisor at LPL Financial LLC in Redwoord City, CA.
He entered the securities industry in 1989 and previously worked for Cetera Investment Advisers, LLC; First Allied Securities, Inc; First Allied Advisory Services, Inc; Morgan Stanley Smith Barney; Morgan Stanley & Co. Incorporated; Banc of America Investment Services, Inc; BA Investment Services, Inc; Citicorp Investment Services; and Dean Witter Reynolds, Inc.
Current and Past Allegations of Conduct Leading to Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in March 2023, Mark Gillelen was the subject of a customer dispute where claimants alleged, “representative made unsuitable investment recommendations during the period of January 2018 to June 2021.” The customer dispute is still pending.
In addition, Mark Gillelen has been the subject of six other disclosures which include the following:
- December 2014—” Bankruptcy.” Dismissed
- December 2009—“ THE CUSTOMER ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS AND MISREPRESENTATION REGARDING THE CUSTOMER’S PURCHASE OF LCM VII LTD. FUND IN AUGUST 2007. The damage amount requested was $305,000. The customer dispute settled for $200,000.
- June 2009—“ MISREPRESENTATION.” The customer dispute settled for $525,000.
- June 2009—“ MISREPRESENTATION.” The customer dispute settled for $825,000.
- September 2008—“ CLAIMANT ALLEGES MISREPRESENTATION, UNAUTHORIZED TRADING AND UNSUITABLE INVESTMENTS IN CDO’S IN 2007. ALLEGED DAMAGES UNSPECIFIED.” The customer dispute settled for $625,000.
- February 2008—“ PENDING INVESTIGATION AT TIME OF TERMINATION INTO REGISTERED REPRESENTATIVE’S VIOLATION OF FIRM POLICIES RELATIVE TO CUSTOMER CORRESPONDENCE.” Banc of America Investment Services, Inc., permitted Mark Gillelen to resign.
For a copy of Mark Gillelen’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.
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