Florida Financial Professional Suspended for Falsifying Customer Wire Request, Providing False Information to Investigators
On March 27th, 2020, the National Adjudicatory Council (NAC) released a final decision In the Matter of Department of Enforcement v. Linda C. Milberger—a case related to the allegations of misconduct raised against a securities broker and a financial professional.
After reviewing the evidence, the NAC that Linda Milberger of Orlando, Florida falsified two customer wire requests and provided false documents to her brokerage firm and to FINRA. Below, our Miami investment fraud attorneys provide an overview of the allegations against the financial professional.
Client Services Representation Falsified Customer Wire Requests, Impeded Investigation
From 2012 to 2016, Linda Milberger was employed as a client services associate at National Securities Corporation (CRD#: 7569/SEC#: 8-164). Specifically, Ms. Milberger worked with a securities broker named Kyle Patrick Harrington (CRD#: 2282328)—a registered representative with whom she was associated at other brokerage firms.
In the Summer of 2012, Mr. Harrington told Ms. Milberger to prepare a $20,000 wire request form for a National Securities Corporation customer identified only as ‘LD’. However, this customer never approved such a request. The customer eventually filed a complaint with the brokerage firm. As it turns out, Mr. Harrington has made a fraudulent withdrawal from the account—converting customer funds. Mr. Harrington was eventually barred from the securities industry for this and other misconduct.
During FINRA’s investigation into the allegations against Mr. Harrington, the agency sought documents, records, and testimony from his long-time associate Linda Milberger. Investigators determined that Mr. Harrington instructed Ms. Milberger to alter records, including bank statements and other sensitive financial documents. He also asked her to give false testimony—which she did. In its investigation, FINRA determined that Ms. Milberger knowingly impeded the investigation. For her misconduct, she has been suspended from the industry for one year and will be required to pay the costs of the hearing.
Broker-Dealers are Responsible for All Associated Persons
Broker-dealers have a legal obligation to protect the financial interests of their customers. All associated persons at a brokerage firm—from registered representatives to sales assistants—are in a position to access sensitive client information. A brokerage firm has a responsibility to ensure that they are hiring reliable employees and providing sufficient oversight of all associated persons.
If you are an investor who lost money because of the misconduct of an associated person, your brokerage firm may be liable—even if the individual in question was not a registered investment adviser (RIA) or licensed securities broker. An experienced investment fraud attorney can review your case, explain your available options, and take action to protect your rights.
Call Our Florida Securities Fraud Lawyers for Immediate Help With Your Case
At Carlson & Associates, P.A., our practice is dedicated to protecting the rights of investors. If you or someone you know suffered losses due to a financial professional’s misconduct, our Florida investment fraud attorneys are ready to help. For a completely confidential assessment of your case, please call our Miami office today. We represent investors in South Florida and beyond.