FINRA barred former LPL Financial and Merrill Lynch broker Greg J. Campbell after his alleged misappropriation of over $2 million in funds from customers at both firms, including elderly customers and members of Campbell's own family.
According to the findings, the misconduct began in May 2008 at Merrill Lynch where Campbell misappropriated more than $1.7 million from firm customers, converting $1.35 million for personal use and making $390,000 of unauthorized transfers between customer accounts.
FINRA explains that Campbell was able to do this by creating at least one Loan Management Account ("LMA") in a customer's name without the customer's knowledge or consent. With the LMA operating as a line of credit, Campbell effected wire transfers directly from the LMA to several third-party accounts, including Campbell's personal mortgage, an auto-loan, home-equity line of credit and an account servicing Campbell's personal debt. Investigators found that in order to complete these transfers, Campbell created falsified letters of authorization and forged customer signatures.
To cover his tracks, Campbell allegedly changed the delivery address of customers' account statements, arranging for delivery to unrelated addresses. Campbell also allegedly replaced some converted funds by transferring funds between customers' accounts without their knowledge or consent.
At LPL Financial in 2012, Campbell allegedly misappropriated over $532,000 from firm customers, of which he converted $365,500 for personal use and made $166,500 of unauthorized distributions between customer accounts.
This time, Campbell allegedly arranged for wire transfers and IRA distributions to be made directly from customers' accounts to LPL brokerage accounts held by Campbell and his wife. Campbell again allegedly created falsified letters of authorization and IRA distribution requests contained forged signatures. Campbell also allegedly arranged for customers' account statements to be delivered to residences owned by Campbell.
For instance, in one egregious case of misappropriation, Campbell converted over $930,000 from an 85-year-old customer who suffers from dementia. In another, Campbell allegedly purported to be a 70-year-old customer's grandson in order to effect a series of unauthorized distributions.
If you have invested with Greg John Campbell, firms LPL Financial or Merrill Lynch or with any broker or firm that has engaged in the misappropriation of funds, drafting of fictitious or fabricated documents such as those containing forged signatures or has effected transactions in your accounts without your consent and such activity has proven harmful to your investments or financial interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.