Mark Lamkin (CRD#: 2121510), a registered representative with Calton & Associates, Inc., (CRD#: 20999) in Louisville, Kentucky, has been suspended by the Financial Industry Regulatory Authority (FINRA), according to his BrokerCheck record accessed on May 15, 2020. What happened to lead to Mark Lamkin’s suspension? Read on to learn more.
On March 30, 2020, Mark Lamkin entered into an Acceptance, Waiver, and Consent (AWC) agreement with FINRA in which he consented to FINRA’s findings that, on three occasions, he borrowed a total of $1,265,000 from a customer. FINRA also found that he lied on a compliance questionnaire, falsely attesting that he had not borrowed money from a customer. Mark Lamkin consented to a fine of $7,500 and a three-month suspension, from April 20, 2020 to July 19, 2020. A copy of Mark Lamkin’s AWC can be viewed here.
FINRA Rule 3240 prohibits brokers from borrowing money from or loaning money to customers unless the broker and the customer are immediate family members or have a pre-existing business relationship. For more information on this topic, see our article “FINRA Rule 3240: Can My Broker Borrow Money?”
Mark Lamkin’s recent suspension is far from the only disclosure on his BrokerCheck record.
Mark Lamkin is currently involved in a pending customer dispute, as well as a pending regulatory action. On April 1, 2019, a customer alleged that the broker misrepresented investments and made unsuitable investment recommendations. The client is seeking $115,000 in damages. According to his Broker Comment, Mark Lamkin was not the advisor of record on this account.
On May 28, 2019, the Commonwealth of Kentucky Public Protection Cabinet, Department of Financial Institutions filed a regulatory allegation against Mark Lamkin. Kentucky securities regulators allege that he engaged in commission sharing for broker-dealer and advisory services. Mark Lamkin has requested a hearing; the matter is pending.
On December 18, 2000, Mark Lamkin voluntarily resigned from PNC Brokerage. What happened? According to Mark Lamkin’s BrokerCheck record, PNC Brokerage found that Mark Lamkin failed to tell the firm that a work colleague accessed his bank account without his knowledge. In his Broker Comment, Mark Lamkin stated that he corrected his colleague’s behavior and received assurances that it would not happen again. Nine months later, during an investigation into his colleague, Mark Lamkin told his firm about the prior incident.
In addition to this voluntarily resignation, Mark Lamkin’s BrokerCheck record also lists settled customer complaints. On August 13, 2018, a customer alleged that Mark Lamkin excessively sold annuities, and that the products were unsuitable. The client further alleged that he misrepresented or failed to disclose material facts and altered account profiles. The client originally sought $153,554 in damages; the matter later settled. Four days after this complaint was initially filed, Mark Lamkin found himself in trouble again. On August 17, 2018, LPL Financial LLC discharged Mark Lamkin after allegations that the brokers accepted loans from customers, failed to disclose outside business activities, and solicited investors to participate in private investments without firm approval. On January 2, 2019, a client alleged that Mark Lamkin misrepresented an investment. The matter later settled.
Mark Lamkin’s alleged conduct is problematic for many reasons. In addition to violating FINRA’s rule against borrowing (discussed above), Mark Lamkin also violated FINRA’s rules against undisclosed outside business activities and selling away. FINRA 3270 prohibits brokers from engaging in outside business activities unless they have received written permission from their member firm. This rule is meant to prevent “selling away,” when unscrupulous brokers peddle unapproved securities products to clients; such misconduct could lead to investor losses, and FINRA rules (as well as federal securities laws) prohibit selling away.
Over his 28-year career in the securities industry, Mark Lamkin has worked for six brokerage firms. In addition to Calton & Associates, Inc. (CRD#: 20999) in Louisville, Kentucky, he has also worked for:
- LPL Financial LLC (CRD#: 6413)
- PNC Brokerage Corp. (CRD#: 34671)
- GNA Securities, Inc. (CRD#: 10465)
- Equico Securities, Inc. (CRD#: 6627)
- The Equitable Life Assurance Society of the United States (CRD#: 4039)
If Mark Lamkin was your broker and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn more about your options for investment loss recovery. Call (877) 238-4175 or email email@example.com for your free case consultation with a securities attorney.