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Larry M. Phillips Fined, Suspended, Restitution Ordered for Overcharging Customers

FINRA suspended Purshe Kaplan Sterling Investments broker Larry M. Phillips of Woodland Hills, California and ordered him to pay fines and restitutions totaling over $10,000 for overcharging certain customers via markups and fees.

FINRA AWC #2011027842701

According to the report, Phillips through Purshe Kaplan Sterling purchased a series of Floating Rate, Steepener, and Principal Protected Notes, CDs and Municipal Securities for select clients.

The findings state that not only did Phillips add a markup to these transactions, he charged his clients advisory fees for these same products that had already received a markup when he placed the products in investment advisory accounts.

FINRA Rules state that assessing both a markup and investment advisory fee on the same product constitutes overcharging clients.

In 2005, Phillips received a $20,000 fine for creating and distributing materials that failed to adequately disclose material facts, or that made misleading statements regarding investment products.

According to Philips' Brokercheck report, he was subject to a complaint made by a client in 2008 related to the sale of a variable annuity. The matter settled with a $25,000 payment to the client.

If you have invested with LA-area broker Larry M. Phillips, or with any broker, financial adviser or firm whose excessive markups, fees or other charges have proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.

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