The Finra settlement didn’t identify the two advisors, but said they worked independently to take funds from 13 clients by directing them to write checks or transfer funds to entities controlled by the advisors.

LPL neither admitted nor denied the industry self-regulator’s allegations, which included that LPL failed to set up “a system reasonably designed to supervise the transmittal of customer funds by wire or check to third parties and to respond reasonably to red flags of potential conversion.”

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