LPL Broker David J. Hackney Fired Over Churning Allegations, Meyer Wilson Investigates
Meyer Wilson's securities arbitration attorneys are currently investigating allegations involving former LPL broker David J. Hackney that he participated in churning.
David J. Hackney (CRD# 2301416) was recently fired from his firm, LPL Financial, over allegations that he participated in account churning between 2012 and 2013. A notice of hearing was recently filed by the Illinois Securities Department, setting Hackney's hearing for February 25 "or as soon as possible thereafter." The hearing will determine whether Hackney should be prohibited from selling securities in Illinois and/or granting relief including but not limited to a fine.
Hackney was a representative of LPL from March 2006 through February 2014 but the alleged misconduct involving high trading volume and frequency took place between 2012 and 2013. The customers that Hackney is accused of defrauding are husband and wife, senior citizens and retirees.
The Illinois Securities Department alleged that Hackney had participated in churning on their account on various occasions, including:
- December 28, 2012 – Hackney is accused of purchasing 3,000 units of an ETF only to sell them a few days later. This activity allegedly cost the investors $1,620.
- March 26, 2013 – Hackney is accused of purchasing 4,000 units of an ETF and selling them less than a month later. This allegedly cost the investors nearly $2,000.
In May 2014, FINRA issued an Intent to Suspend letter that permanently barred Hackney from associating with any FINRA member firm.
For more information on churning, attorney David Meyer put together this video explaining the process:
If you or someone you know invested with Hackney and lost a substantial amount of money, you may be able to recovery your losses. Meyer Wilson's investment fraud lawyers help investors recover losses caused by fraud and misconduct. Call today or fill out a free evaluation form to learn how we can help.