Regulators suspend former LPL broker in Florida for allegedly misappropriating personal information of thousands of clients while preparing to join the independent broker-dealer in 2022.
Nathaniel Adams allegedly emails a spreadsheet containing names, addresses, Social Security numbers, birth dates, and other information of around 2,300 clients, including some he didn’t work with, to his wife. He then forwards that document to a contact at LPL Financial, according to a settlement letter with Finra, the brokerage industry’s self-regulator.
Adams accepts the settlement, which includes a two-month suspension and a $5,000 fine, without admitting or denying misconduct. Lawyers for Adams don’t immediately respond to requests for comment.
Before joining LPL, Adams works with Citizens Bank and Trust and is registered with its broker-dealer, Infinex Investments, now owned by Osaic Institutions.
Finra alleges that Adams emails the unencrypted client information in June 2022 without the consent of the clients or his firm. That action violates Infinex’s policy on client information and Finra’s rule on professional conduct, according to the regulator.
Adams resigns from Infinex and joins LPL in July 2022. His tenure at the broker-dealer doesn’t last long.
Infinex discovers the emailed spreadsheet after Adams leaves and notifies LPL, which discharges Adams in September 2022, according to Finra. LPL cites allegations that Adams “improperly transmitted customer information from former-broker dealer” in its termination notice.
A spokesperson tells Barron’s, “When we were made aware of the allegations, we promptly conducted an internal investigation, which resulted in the advisor’s termination with the firm in 2022.”
Osaic and Citizens Bank and Trust don’t immediately respond to requests for comment.
Adams is briefly registered with another firm, AAG Capital, following his dismissal by LPL, according to the online database BrokerCheck. That relationship ends after authorities in Florida file criminal charges against Adams relating to the alleged theft of client information. Adams is “permitted to resign” from AAG in June 2023 after criminal allegations come to light, according to his termination notice.
AAG doesn’t immediately respond to a request for comment.
The four felony charges, including scheme to defraud and theft of a trade secret, are dismissed in February after a state attorney certifies that Adams complies with the terms of a deferred prosecution agreement, according to court records.
Adams is no longer registered with any firm, but he remains subject to Finra’s jurisdiction, according to the regulator. Finra says it begins looking into Adams’ conduct after reviewing his termination form from LPL.
