Former LPL Financial LLC Broker Elias Hakimian, Suspended by FINRA – Costa Mesa, California

The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Elias Hakimian from the securities industry for three months. Mr. Hakimian consented to the suspension after FINRA alleged that he borrowed $120,000 from a customer without notice to or obtaining written pre-approval from his employing brokerage firm, LPL Financial LLC, in violation of FINRA Rules 3240 and 2010. FINRA also fined Mr. Hakimian $5,000.

LPL Financial LLC allowed Mr. Hakimian to “voluntarily resign” after a customer alleged that he engaged in churning in the customer’s accounts and invested the customer’s funds in speculative ventures contrary to the customer’s objectives and risk tolerance, in addition to taking loans from the customer.

Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker.

Churning is a more egregious variation of excessive trading. Churning refers to a situation where the broker executed an excessive number of trades and did so with the intent to defraud or reckless disregard for the customer’s interest. Churning is an unethical and illegal practice. It is also a violation of securities rules and regulations and can cause enormous harm to customers.

If you have suffered financial losses investing with Elias Hakimian, or suspect that Mr. Hakimian did not have your best interest in mind when recommending investments or making account transactions, contact our New York securities arbitration law firm for a free and confidential review of your account or annuity contract.

Iorio Law PLLC represents investors that have disputes with their financial advisors or brokerage firms, such as LPL Financial LLC.

FINRA Letter of Acceptance, Waiver, and Consent No. 2019062902601

FINRA and Mr. Hakimian entered into a Letter of Acceptance, Waiver, and Consent No. 2019062902601 on April 21 2021, after FINRA alleged that in March 2011, Mr. Hakimian borrowed 120,000 from a customer without notice to or obtaining written pre-approval from LPL Financial LLC. Specifically, FINRA alleged:

• In March 2011, Mr. Hakimian borrowed $120,000 from an LPL customer with whom he had a close friendship.
• Hakimian signed a loan agreement and agreed to pay 10 percent interest per year, with the note to be repaid within two years.
• The loan was then extended and restructured several times.
• In 2019, Mr. Hakimian fully repaid the loan.
• LPL’s policies prohibited its registered representatives from borrowing money from customers except in certain limited circumstances, none of which applied to the loan Mr. Hakimian received from the customer.
• The firm’s policies also required its registered representatives to receive approval prior to borrowing money from customers.
• At no time did Mr. Hakimian seek or receive approval from LPL to enter into the loan agreement.
• In addition, in eight separate annual compliance questionnaires from 2011 to 2018, Mr. Hakimian falsely represented that he had not borrowed money from another individual or entity.
• The firm only learned of the loan after the customer complained.
• Hakimian violated FINRA Rules 3240 and 2010.

Financial Advisor Elias Moses Hakimian (CRD No. 4404048)

Elias Moses Lopez-Hakimian has 17 years of experience in the securities industry and was associated with LPL Financial LLC in Seal Beach, CA, from October 2005 to June 2019.

Mr. Hakimian also conduced business through an entity named Crystal Cove Advisors.

In April 2019, a customer filed a securities arbitration complaint against Mr. Hakimian and LPL Financial LLC. The customer alleged that between 2010 and 2017, Mr. Hakimian engaged in churning of the customer’s accounts and also invested the customer’s funds in speculative ventures. The customer also alleged that Mr. Hakimian borrowed money from customers. LPL Financial LLC and Mr. Hakimian settled the dispute for $275,000.

LPL Financial LLC – A Duty to Supervise

Financial institutions like LPL Financial LLC must properly supervise financial advisors and customer accounts. Brokerage firms must establish and maintain a reasonably designed system to oversee account activity, such as churning, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.

How to Recover Financial Losses or Obtain a Free Consultation

If you have suffered investment losses with Elias Hakimian or LPL Financial LLC or suspect other inappropriate activity occurred in your investment or retirement account, contact New York securities arbitration attorney August Iorio of Iorio Law PLLC. August Iorio can be reached at info@iorio.law or toll-free at (646) 330-4624 for a free and confidential review of your legal rights.

About Iorio Law PLLC

Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

We have over 15 years of experience as securities arbitration lawyers and have helped investors recover investment losses in over 800 cases. The firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.

This blog was published by August Iorio when he was a Partner at his previous firm and has been updated to reflect Iorio Law PLLC’s new contact information. To evaluate any potential claims, contact securities arbitration lawyer August Iorio for a free consultation contact Iorio Law PLLC at info@iorio.law or (646) 330-4624.