Former LPL Brokers, as a Member of Keystone Capital Partners, Allegedly Defrauded 200 Federal  Staff Members

Former LPL Brokers Jonathan Cooke, Danny Hood, Christopher Laws, and Brandon Long, each of whom were registered representatives of a broker dealer, allegedly ran a purported scheme which defrauded federal employees under the banner of an entity called Keystone Capital Partners,Inc., according to an SEC Complaint currently under review by attorney Alan Rosca.

Attorney Alan Rosca, of the RoscaLaw LLC firm, is investigating activity related to Keystone Capital’s alleged scheme to defraud U.S. Federal employees. Investors who believe they may have lost money in activity related to Keystone Capital’s alleged scheme to defraud U.S. Federal employees are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.

The alleged scheme scheme, which took place between approximately March 2012 and November 2014, purportedly rolled over $40 million from the Federal pension funds, referred to as Thrift Savings Plan, into greater expense annuities, according to the aforementioned SEC Complaint.

The aforementioned representatives, allegedly motivated by the prospect of high commissions associated with the variable annuities, purportedly targeted federal employees, “age 59 1/2 and over, who had significant TSP account holdings that could be rolled over on a tax-free basis into variable annuities held in qualified plans at annuity carriers”, the Complaint states.

Cooke and Former LPL Brokers Allegedly “Fostered the Misleading Impression that They Were in Some way Affiliated with or Approved by the Federal Government”

Jonathan Cooke and his fellow LPL brokers, under the banner of Keystone Capital Partners, Inc.,allegedly implemented several tactics calculated to mislead federal employees into believing that the aforementioned defendants and their recommended investment were affiliated with or approved by the federal government, according to the aforementioned Complaint being reviewed by attorney Alan Rosca.

For example, Cooke, allegedly made misleading comparisons between their recommended investment and the life annuity offered through the TSP by omitting key information or falsely describing the actual fee structure and surrender fees related to their recommended investment even though their recommended investments had no connection to the Thrift Savings Plan, the Complaint states.

Cooke allegedly cofounded Keystone in 2012 with Christopher Laws, the SEC said, and the brokers’ scheme allegedly earned them about $1.7 million on the sales between March 2012 and November 2014, the Complaint reports.

In December 2014 Cooke was terminated from LPL, and from that time until his voluntary termination of his registration in December 2016, he was a registered representative with another broker dealer, the Complaint states.

Securities Lawyer Investigating

The RoscaLaw firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Keystone Capital’s alleged scheme to defraud U.S. Federal employees. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions, and has helped recover tens of millions of dollars on behalf of investors.

Investors who believe they lost money as a result of Keystone Capital’s alleged scheme to defraud U.S. Federal employees may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998- 0530, via email at arosca@roscalaw.com, or through the contact form on this webpage.

filed under: Investigations

Tags: , , , , , , ,

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent updates regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases. Also, the brokercheck report linked to some of our blogs is the up-to-date version as of the date of posting. Visitors may check the most recent version of each brokercheck report at www.finra.org.