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SEC Bars Ex-LPL Financial Advisor Over Annuity Sales

By Alex Padalka July 11, 2018

The SEC has barred a former LPL Financial representative over allegedly unsuitable sales of variable annuities, according to an administrative order from the regulator.

LPL discharged Roger Zullo in 2016, after he had been with the firm for 12 years, following a Massachusetts Securities Division complaint alleging Zullo fabricated client suitability profiles and made unsuitable variable annuity recommendations that yielded him significant commissions, according to his BrokerCheck profile.

In April 2017, Zullo consented to an order from the state regulator barring him from working as an investment advisor in Massachusetts, compelling him to disgorge $1.875 million in commissions he allegedly received from January 2013 to December 2016, and assigning a $40,000 penalty, according to the SEC. That order, however, waived a requirement that Zullo pay full restitution to harmed investors in case LPL didn’t provide it, on account of Zullo’s “financial condition,” the SEC says.

(Getty)

Zullo neither admitted nor denied the SEC’s findings in settling with the regulator, according to the SEC’s order. He had been in the industry since 1988 and had no prior disclosure records prior to the charges brought by the Massachusetts regulator, according to BrokerCheck.