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LPL Financial's Timothy Engelmann Sanctioned for Unauthorized Loan Through LLC

Attorney Advising Disclaimer

FINRA fined and suspended former LPL Financial (Albuquerque, New Mexico) broker Timothy Aaron Engelmann for taking loans from customers without authorization or disclosure, and for making false statements that he had not borrowed money from any firm customer when, in fact, he had.

According to AWC #2019064775801, Timothy Engelmann (CRD #4933563) borrowed over $100,000 from multiple LPL customers in the form of promissory notes issued by an limited liability company that Engelmann reportedly owned, in order to finance a real estate venture. FINRA's report states that Engelmann did not notify LPL Financial of the loans nor did he obtain approval to borrow money from clients.

Furthermore, FINRA discovered that Engelmann falsely stated in firm compliance questionnaires that he had not borrowed money from any firm customer.

LPL Financial terminated Engelmann in November 2019 for receiving loans from clients in violation of LPL policy. In 2010, Engelmann settled a customer dispute that had alleged he failed to follow instructions regarding mutual fund investment activity.

Engelmann's BrokerCheck file lists several outside business activities, including an LLC. In 2016, Engelmann listed a DBA for LPL business called New Mexico Financial Partners, LLC, of Sante Fe, NM. An earlier LLC also from 2016 described as a business entity for tax/investment purposes only was called Resurgent Homes LLC.

Prior to joining LPL Financial in 2016, Engelmann was registered with Merrill Lynch (2013-16), also in Albuquerque, NM.If you have invested with former LPL Financial broker Timothy Aaron Engelmann or with any financial adviser or stockbroker who borrowed money from you through a promissory loan without permission, authorization, or disclosure, and this activity has proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.

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