FOR IMMEDIATE RELEASE
Wednesday, December 18, 2013
Contact: Kevin Flannery, (573) 526-0949
Kander Recovers Over $367,000 for Scammed Investors
Jefferson City, Mo. — Secretary of State Jason Kander today announced that his office recovered more than $367,000 to fully repay investors whose money was stolen by a former St. Louis-based contractor of Massachusetts company LPL Financial, LLC. The recovery stems from an investigation Kander’s office conducted into the activities of the firm’s former agent Greg John Campbell.
"My number one goal in cases of financial fraud is always to make victims whole," Kander said. "I’m pleased to announce that victims of this scam will have 100 percent of their hard-earned savings returned."
The settlement reached with LPL Financial is the second related to the actions of Greg John Campbell, who was barred from the industry by Kander’s office earlier this year and sentenced to 38 months in prison after pleading guilty to two counts of wire fraud in the U.S. District Court for the Eastern District of Missouri. In August, Kander returned over $1.6 million to investors in a settlement with Merrill Lynch, Pierce, Fenner & Smith Incorporated, another of Campbell’s former employers.
The investigation by Kander’s office revealed that Campbell violated the law repeatedly while employed as an agent of LPL Financial. He executed unauthorized trades, changed the addresses of at least two clients to an apartment he owned, opened accounts with forged documents and routed at least $361,000 from clients to accounts under his control. He also falsely portrayed a client as his grandmother in order to avoid questions and duck supervision.
In addition to returning over $367,000 to investors, Kander’s office ordered LPL Financial to cover the cost of the investigation and pay a $175,000 fine to the state for failing to properly supervise Campbell. The settlement alleges LPL Financial allowed Campbell to continue to make transfers in client accounts despite having been notified that Campbell was under review at his previous firm for suspicious transfers.
Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.
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