The U.S. Securities and Exchange Commission (SEC) has indicted former LPL Financial LLC broker James Kenneth Couture for investment fraud. Couture is accused of misappropriating approximately $2.9 million from clients over the course of 10 years.
Levin Law, P.A. represents investors who have suffered losses due to stockbroker fraud and other forms of financial misconduct. Brokerage firms can be held liable through a FINRA arbitration claim for their representative’s misrepresentations, negligence, breach of fiduciary duty, fraud, and for their own failure to supervise.
According to the SEC complaint, Couture breached the fiduciary duty he owed to his clients by failing to act with good faith, failing to disclose material conflicts of interest, and failing to use reasonable care to avoid misleading them.
Ultimately, Couture placed his own interests ahead of his clients by encouraging them to “sell portions of their securities holding in order to fund large money transfers” to an entity he owned and controlled. The SEC alleges that he obtained client authorization through false pretense by misrepresenting that proceeds would be reinvested to benefit the client. In reality, the proceeds were used for Couture’s own benefit.
Additionally, Couture used fabricated documents and account statements referring to securities transactions that never occurred. In total, it is believed that Couture misappropriated nearly $2.9 million through his fraudulent scheme.
Publicly available information indicates that Couture was discharged from his employment with LPL Financial in June 2020. Allegations include that he altered identifying information, account balances and distributions on a customer statement. Additionally, it was alleged that he commingled customer funds and used an unapproved email address.
In October 2020, Couture was barred by the Financial Industry Regulatory Authority (FINRA) from acting as a broker or otherwise associating with a broker-dealer firm. As noted in the Letter of Acceptance, Waiver, and Consent indicated that after his termination, he “refused to provide a complete production of documents and information” as requested in a FINRA investigation.
If you have suffered losses as a result of a stockbroker or financial advisor’s misconduct, contact Levin Law, P.A. for a free case evaluation. Investors might be entitled to compensation through a FINRA arbitration claim. Call (305) 402-9050 or email managing partner Brian Levin at email@example.com.
Most cases are accepted on a contingency fee basis, meaning that clients are not obligated to pay Levin Law’s attorney fees unless money is recovered on their behalf. Attorney Levin has recovered millions of dollars on behalf of harmed investors worldwide.
Levin Law is a premier national securities and class action law firm. Brian Levin, Levin Law’s managing attorney, has obtained settlements and recoveries over $100,000,000 in assets through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.