The ex-broker fired by LPL Financial in 2019 for his role in scheme to help clients circumvent fees has agreed to a two-year suspension from working as a registered representative and a $10,000 fine, FINRA said.
The advisor, Raymond Alagao Velasco, Sr., allegedly concocted an elaborate scheme in which clients could avoid the fees incurred when they surrendered variable annuities. Velasco wrote fraudulent termination letters for clients as part of a plan to transfer four accounts to LPL from MetLife, according to AdvisorHub, citing FINRA documents and Velasco’s BrokerCheck history.
After LPL terminated Velasco, he joined Kovack Advisors in Illinois.
Velasco signed the acceptance, waiver and consent letter without admitting or denying the findings, AdvisorHub reports.
