LPL Rep Suspended for Trading in Deceased Client's Account
The advisor falsely stated that he spoke with the client about the trade before their death, FINRA said.
The Financial Industry Regulatory Authority has suspended a registered representative with LPL Financial and fined him $7,500 for unauthorized trading in the account of a deceased client.
According to FINRA’s order, Ronald Gene Chronister’s brokerage customer passed away on Jan. 8, 2021, after being hospitalized for several weeks.
On Jan. 15, 2021, unaware of the client’s death, Chronister made a trade in the customer’s account to fund an upcoming required minimum distribution. Later that day, Chronister learned of the customer’s death, the order states.
However, on Feb. 19, 2021, Chronister “falsely stated in an email to LPL that he had spoken with the customer in early January 2021 about the trade.”
Unauthorized trading occurs when a registered representative places a trade in a customer’s account without the customer’s authorization or consent. With his actions, the broker-dealer self-regulator found that Chronister, who is based in Wichita, Kansas, violated FINRA Rule 2010.
He consented to a 45-day suspension from associating with any FINRA member in all capacities and the $7,500 fine.
Chronister started his career in the industry in 1999 and has been affiliated with LPL since 2003, according to his BrokerCheck record.