FREDERICK JAMES HARKINS

FREDERICK JAMES HARKINS is currently employed as a Broker and/or Investment Adviser at LPL FINANCIAL LLC located at 206 GANO ST, PROVIDENCE, RI, 02906-3835.

FREDERICK JAMES HARKINS has worked at LPL FINANCIAL LLC since June 30, 2008

Disclosure History

FREDERICK JAMES HARKINS has 1 Disclosure Event(s).

Date: February 21, 2007
Category: Customer Dispute
Allegations: CLIENTS SOLD SHARES OF CYBERKINETICS NEUROTECHNOLOGY (CYKN) IN THE ACCOUNT IN NOVEMBER 2006 AND UTILIZED PROCEEDS TO PURCHASE VARIOUS INVESTMENTS. CLIENTS ALLEGE THEY INFORMED THE IR THAT THEY WOULD BE PURCHASING A HOUSE IN APPROXIMATELY SIX MONTHS AND THEY QUESTION THE SUITABILITY OF THE INVESTMENTS PURCHASED CONSIDERING THEY WOULD NEED ACCESS TO THE FUNDS IN A VERY SHORT TIME FRAME. CLIENTS ALSO ALLEGE COMMISSIONS AND/OR SALES CHARGES WERE NOT EXPLAINED TO THEM AND THAT THE IR SHOULD HAVE MAKE SURE ENOUGH FUNDS WERE AVAILABLE TO COVER THE TAX LIABILITY FROM THE CAPITAL GAINS ASSOCIATED WITH THE SALE OF CYKN.
Damage Amount Requested: $5,000.00
Broker Comment: ACCORDING TO THE FA, HE ADVISED THE CLIENTS THE COST OF SELLING STOCK THROUGH EDWARD JONES WOULD GENERALLY BE 1.5% TO 2.5% OF THE TOTAL PRINCIPAL AMOUNT. HE HAS INDICATED THAT HE EXPLAINED, DUE TO THE LARGE POSITION OF CYKN, HE WOULD CONSIDER REDUCING COMMISSIONS. OUR RECORDS REFLECT THE APPROPRIATE PAPERWORK WAS COMPLETED TO FACILITATE THE SALE OF THE STOCK AND SHARES WERE SOLD IN NOVEMBER 2006 AND THE FA DID DISCOUNT THE COMMISSIONS. THE FA HAS STATED THAT THE CLIENT(S) DID MENTION THEY WERE CONSIDERING MOVING TO ANOTHER STATE, BUT WERE UNSURE OF WHEN THIS MIGHT TAKE PLACE AS THE WIFE INTENDED ON COMPLETING HER RESIDENCY PRIOR TO THE MOVE. THE FA HAS FURTHER STATED THAT HE SUGGESTED LEAVING A PORTION OF THE SALES PROCEEDS IN CASH IN ORDER TO MEET IMMEDIATE NEEDS AND TO PROVIDE LIQUID ASSETS SHOULD THE CLIENTS DECIDE TO PURCHASE A HOME SOONER THAN INTENDED. IN REGARD TO THEIR CONCERN RELATED TO THE WRITTEN DOCUMENTATION FOR THE CMO PURCHASE, THE FA HAS INDICATED HE WOULD HAVE PROVIDED A CMO BROCHURE TO THE CLIENTS WHEN PRESENTING THE INVESTMENT. AT THE TIME OF THE TRANSACTIONS (BUYS/SELLS), THE CLIENTS RECEIVED TRADE CONFIRMATIONS WHICH PROVIDED DETAILS OF THE TRANSACTIONS. THE MUTUAL FUND AND STOCK CONFIRMATIONS PROVIDED INFORMATION RELATED TO THE SALES CHARGES AS WELL AS APPLICABLE DISCOUNTS. IN ADDITION,THE CLIENTS WOULD HAVE RECEIVED PROSPECTUSES FOR EACH OF THE MUTUAL FUNDS WHICH PROVIDED ALL DETAILS OF THE FUNDS. SINCE THE PURCHASES, THE CLIENTS HAVE RECEIVED STATEMENTS WHICH PROVIDE INFORMATION REGARDING THE INVESTMENTS HELD IN THE ACCOUNT AS WELL AS REFLECTING ACCOUNT ACTIVITY. BASED ON OUR REVIEW, IT APPEARS THE FA MADE HIS SUGGESTIONS BASED ON DISCUSSIONS WITH THE CLIENTS. IN ADDITION, IT IS OUR OPINION; THE TRANSACTIONS WERE COMPLETED WITH THE CLIENTS' KNOWLEDGE AND AUTHORIZATION. CLAIM DENIED.

More Information

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