Brian Patrick Dennen at LPL FINANCIAL LLC – View Complaints, Disclosures, Scams and Audit Report (Updated 2023)

Disclosure #1 for Brian Dennen

• • eventDate: 11/13/2015
  • Disclosure Type: Regulatory
  • Disclosure Resolution: Final
  • Disclosure Detail :: DocketNumberFDA: 2012034821903
  • DocketNumberAAO: 2012034821903
  • Initiated By: FINRA
  • Allegations: Without admitting or denying the findings, Dennen consented to the sanctions and to the entry of findings that a member firm, through Dennen and another Managing Director at the firm, permitted one of its customers to circumvent the various options exchanges Professional Customer Order designation rules. The findings stated that they did so by failing to aggregate orders that were placed in multiple accounts under the same common beneficial ownership of the customer, which resulted in the accounts not being properly designated as Professional Customer. As a result, the customer avoided paying higher options exchange fees, and avoided receiving lower exchange priority of execution. Based upon approved documents, all of which were on file at the firm, the firm, Dennen and another Managing Director, as principals, knew or should have known that the common beneficial owners controlled the master/sub-accounts. As such, for the purpose of the Professional Customer designation, the accounts were required to be aggregated. The findings also stated that in the third quarter of 2011, the sub-accounts placed more than 390 orders in listed options per day on average during one or more months during this period. As such, all orders for these accounts were required to be represented as Professional Customer during the fourth quarter of 2011. Although the firm’s own reports flagged two sub-accounts as Professional Customer in September 2011 because they each individually exceeded the average of over 390 orders in September, the firm and Dennen failed to designate any of the orders in the accounts of the common beneficial owners as Professional Customer. As a result, there were 97,940 orders that were entered that were incorrectly designated as Customer instead of Professional Customer, which resulted in a total of 23,292 executions involving a total of 296,296 contracts. These contracts therefore received priority of execution and did not pay higher fees to the various options exchanges where the executions took place.
  • Resolution: Acceptance, Waiver & Consent(AWC)
  • SanctionDetails :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
  • SanctionDetails :: Amount: $15,000.00 Sanctions: Suspension
  • SanctionDetails :: Registration Capacities Affected: Any principal capacity
  • Duration: One week
  • Start Date: 12/7/2015
  • End Date: 12/13/2015
  • Regulator Statement: Fine paid in full on December 9, 2015.