Shortly after FINRA barred former LPL Financial broker Christopher Joseph Lossing for failing to cooperate with its investigation, we're learning why Lossing was in trouble to begin with, as LPL sued its former broker over an alleged $292,000 theft from a brokerage account. We're also learning why the alleged theft occurred, and it has to do with a system error at LPL Financial.
According to InvestmentNews, LPL sued its former Las Vegas, Nevada branch broker Lossing (CRD #5798906) for allegedly misappropriating $292,000 from three brokerage trust and retirement accounts that had been awarded to Lossing's wife in divorce proceedings.
The report indicates that after Lossing's ex-wife was awarded all of the money in the former couple's three jointly held accounts, Lossing submitted forms to LPL to move the money and distribute funds in violation of the divorce decree, effectively steering the $292,000 away from his ex-wife before the court order could take effect.
The article notes that LPL Financial made a mistake in processing Lossing's request and, "due to a system error," transfered $292,000 out of the brokerage accounts. As such, LPL settled with Lossing's ex-wife and now seeks to recover the funds through its suit against Lossing.
Prior to joining LPL Financial in July 2016, Lossing had been associated with Edward Jones of Henderson, NV.
If you have invested with Christopher J Lossing or with any broker who has converted or misappropriated funds from your account—or with a firm that, due to error or otherwise, facilitated a rogue representative's illicit transfer request—resulting in damages to your financial interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.