Former LPL Financial Broker Suspended for Unsuitable UIT Recommendations
Mark Tauzin, a former registered representative with LPL Financial LLC submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was suspended and assessed a deferred fine of $20,000 by the Financial Industry Regulatory Authority (FINRA) for engaging in unsuitable short-term trading of front-loaded Unit Investment Trusts (UITs) which resulted in sales charges to the customers of more than $316,000. According to FINRA, Mark Tauzin, of Lafayette, Louisiana, effected 215 UIT transactions in the accounts of 14 households that were sold within a 12 month time period. UITs are not designed to be used as trading investments, particularly not to be used for short-term trading, and typically carry significant upfront charges. As a result of Mr. Tauzin’s unsuitable UIT transactions, the customers incurred sales charges of $316,840.50 and Mr. Tauzin received $205,115.02 in commissions.
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