Lawrence Todd Smith – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Lawrence Todd Smith.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Lawrence Todd Smith. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Lawrence Smith
Lawrence Todd Smith is an Investment Adviser. Lawrence Todd Smith’s Central Registration Depository (CRD) number is 2419838 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2419838.
Click here to download a Detailed Audit Report for Lawrence Todd Smith.
Lawrence Todd Smith has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Lawrence Todd Smith’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 3/5/2008
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: ILLINOIS
- Allegations: RESPONDENT WILL WITHDRAW HIS APPLICATION FOR REGISTRATION AS A SALESPERSON IN THE STATE OF ILLINOIS AND WILL NOT RE-APPLY FOR REGISTRATION FOR A PERIOD OF TWO YEARS. RESPONDENT HAS PAID COST OF INVESTIGATION.
- Resolution: Consent
- Sanction Details ::
- Sanctions: CONSENT ORDER OF WITHDRAWAL
- Sanction Details: RESPONDENT WILL WITHDRAW HIS APPLICATION FOR REGISTRATION AS A SALESPERSON IN THE STATE OF ILLINOIS AND WILL NOT RE-APPLY FOR REGISTRATION FOR A PERIOD OF TWO YEARS. RESPONDENT HAS PAID COST OF INVESTIGATION.
- Broker Comment: THIS INVESTIGATION WAS BASED ON ACTIVITY THAT IS 10 YEARS OLD AND HAD ABSOLUTELY NOTHING TO DO WITH THE STATE OF ILLINOIS. I HAVE NEVER HAD ANY CUSTOMERS THERE AT ANY TIME.
DISCLOSURE 2 –
- Event Date: 1/26/1998
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: GEORGIA SECRETARY OF STATE, COMMISSIONER OF SECURITIES
- Allegations: LAWRENCE T. SMITH, IN CONNECTION WITH AN OFFER TO SELL, SALE, OFFER TO PURCHASE OR PURCHASE OF A SECURITY IN GEORGIA, EMPLOYED A DEVICE, SCHEME OR ARTIFICE TO DEFRAUD. FURTHERMORE, HE MISREPRESENTED AND OMITTED MATERIAL FACTS. HE ENGAGED IN A PATTERN OF UNREASONABLE AND UNJUSTIFIABLE DELAYS IN THE EXECUTION OF SELL ORDERS, THE DELIVERY OF SECURITIES AND ACCOUNT BALANCES.
- Resolution: Order
- Sanction Details :: Sanctions: Revocation/Expulsion/Denial Sanctions: Cease and Desist/Injunction Sanctions: Bar
- Sanction Details: IT IS ORDERED THAT THE REGISTRATION OF LAWRENCE T. SMITH AS A SECURITIES SALESMAN IN GEORGIA BE REVOKED. IT IS FURTHER ORDERED THAT HE CEASE AND DESIST ANY AND ALL VIOLATIONS OF THE GEORGIA SECURITIES ACT. HE IS FOREVER BARRED FROM ANY ASSOCIATION WITH A DEALER, LIMITED DEALER OR INVESTMENT ADVISOR REGISTERED IN GEORGIA.
DISCLOSURE 3 –
- Event Date: 10/15/1997
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: CAF970002
- DocketNumberAAO: 970002
- Initiated By: NASD
- Allegations: VIOLATIONS OF NASD RULES 2110, 2120, 2310 (A), 2330(E), 3010, AND 3110 IN THAT, IN CONNECTION WITH FRAUDULENT SALES PRACTICES AND UNAUTHORIZED TRANSACTIONS, RESPONDENTS MADE INADEQUATE OR INACCURATE RISK DISCLOSURE WHEN PERSUADING CUSTOMERS TO PURCHASE RECOMMENDED SECURITIES; RESPONDENTS MADE FALSE PROMISES TO LIMIT LOSSES; RESPONDENTS ENGAGED IN UNAUTHORIZED TRADING IN CUSTOMER ACCOUNTS; SMITH, R. SMITH, MADE MISREPRESENTATIONS AS TO SPECIFIC ISSUERS; REFUSED OR FAILED TO EXECUTE CUSTOMER SELL ORDERS; ENGAGED IN UNSUITABLE RECOMMENDATIONS AND TRADING; PROVIDED FALSE TESTIMONY IN CONNECTION WITH THIS INVESTIGATION.
- Resolution: Decision & Order of Offer of Settlement
- Sanction Details :: Sanctions: Censure Sanctions: Civil and Administrative Penalty(ies)/Fine(s) Sanctions: Suspension
- Regulator Statement: ON JUNE 11, 1998, THE DECISION AND ORDER OF ACCEPTANCE OF OFFER OF SETTLEMENT SUBMITTED BY RESPONDENT SMITH WAS ISSUED; THEREFORE, HE IS CENSURED, FINED $20,000, SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR TWO YEARS, AND REQURIED TO REQUALIFY BY EXAM PRIOR TO BECOMING ASSOCIATED WITH ANY MEMBER FIRM. THE FINE COLLECTION EFFORTS WILL BE SUSPENDED UNTIL RESPONDENT SMITH SEEKS RE-ENTRY TO THE SECURITIES INDUSTRY. PAYMENT OF THE FINE SHALL BE A PREREQUISITE FOR ANY APPLICATION FOR ASSOCIATION WITH A MEMBER FIRM. RESPONDENT SMITH’S SUSPENSION WILL COMMENCE WITH THE OPENING OF BUSINESS ON AUGUST 17, 1998 AND WILL CONCLUDE AT THE CLOSE OF BUSINESS AUGUST 16, 2000. FINES PAID.
DISCLOSURE 4 –
- Event Date: 2/25/1997
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: MISREPRESENTATION, ACCOUNT RELATED BREACH OF CONTRACT, BREACH OF FIDUCIARY DUTY, UNAUTHORIZED TRADING
- Damage Amount Requested: $44,149.00
- Arbitration Claim Filed Detail: 96-05228
- Arbitration Docket Number:
- Broker Comment: **WITH REGARD TO QUESTIONS 18 AND 19* AS FAR AS I RECALL I WAS NOT REQUIRED TO CONTRIBUTE ANY MONETARY COMPENSATION, AWARD, SETTLEMENT OR REPARATION. I WAS NOT INVOLVED IN THESE SETTLEMENTS AND NEVER RECEIVED ANY DOCUMENTATION OR LETTERS REGARDING THE OUTCOME OF THESE ARBITRATIONS. I CAN ONLY ASSUME THE BD SETTLED THESE ARBITRATIONS AFTER I HAD LEFT THE FIRM. I CONTACTED THE NASD’S ARBITRATION OFFICE AND AFTER HAVING LOOKED UP THE CASES I WAS ADVISED THEY WERE TOO OLD TO FIND THIS INFORMATION. **WITH REGARD TO QUESTION #11** IN THE INTEREST OF FULL DISCLOSURE THIS IS MY GOOD FAITH DETERMINATION AS TO WHETHER THE SETTLEMENT WAS EQUAL TO, GREATER THAN OR ABOVE $10,000.00. BASED ON THE AMOUNT OF THE CLAIM, I WOULD EXPECT THAT IF THERE WAS A SETTLEMENT IT WOULD HAVE BEEN GREATER THAN $10,000.00. I DID NOT PARTICIPATE IN ANY SETTLEMENT WITH REGARD TO THIS MATTER.
DISCLOSURE 5 –
- Event Date: 12/4/1995
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: MISREPRESENTATION, SUITABILITY
- Damage Amount Requested: $23,520.00
- Arbitration Claim Filed Detail: 95-05617
- Arbitration Docket Number:
- Broker Comment: **WITH REGARD TO QUESTIONS 18 AND 19* AS FAR AS I RECALL I WAS NOT REQUIRED TO CONTRIBUTE ANY MONETARY COMPENSATION, AWARD, SETTLEMENT OR REPARATION. I WAS NOT INVOLVED IN THESE SETTLEMENTS AND NEVER RECEIVED ANY DOCUMENTATION OR LETTERS REGARDING THE OUTCOME OF THESE ARBITRATIONS. I CAN ONLY ASSUME THE BD SETTLED THESE ARBITRATIONS AFTER I HAD LEFT THE FIRM. I CONTACTED THE NASD’S ARBITRATION OFFICE AND AFTER HAVING LOOKED UP THE CASES I WAS ADVISED THEY WERE TOO OLD TO FIND THIS INFORMATION. **WITH REGARD TO QUESTION #11** IN THE INTEREST OF FULL DISCLOSURE THIS IS MY GOOD FAITH DETERMINATION AS TO WHETHER THE SETTLEMENT WAS EQUAL TO, GREATER THAN OR ABOVE $10,000.00. BASED ON THE AMOUNT OF THE CLAIM, I WOULD EXPECT THAT IF THERE WAS A SETTLEMENT IT WOULD HAVE BEEN GREATER THAN $10,000.00. I DID NOT PARTICIPATE IN ANY SETTLEMENT WITH REGARD TO THIS MATTER.
DISCLOSURE 6 –
- Event Date: 4/10/1995
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: BREACH OF FIDUCIARY DUTY, SUITABILITY, MISREPRESENTATION, ACCOUNT RELATED NEGLIGENCE
- Damage Amount Requested: $71,227.50
- Arbitration Claim Filed Detail: 95-01557
- Arbitration Docket Number:
- Broker Comment: **WITH REGARD TO QUESTIONS 18 AND 19* AS FAR AS I RECALL I WAS NOT REQUIRED TO CONTRIBUTE ANY MONETARY COMPENSATION, AWARD, SETTLEMENT OR REPARATION. I WAS NOT INVOLVED IN THESE SETTLEMENTS AND NEVER RECEIVED ANY DOCUMENTATION OR LETTERS REGARDING THE OUTCOME OF THESE ARBITRATIONS. I CAN ONLY ASSUME THE BD SETTLED THESE ARBITRATIONS AFTER I HAD LEFT THE FIRM. I CONTACTED THE NASD’S ARBITRATION OFFICE AND AFTER HAVING LOOKED UP THE CASES I WAS ADVISED THEY WERE TOO OLD TO FIND THIS INFORMATION. **WITH REGARD TO QUESTION #11** IN THE INTEREST OF FULL DISCLOSURE THIS IS MY GOOD FAITH DETERMINATION AS TO WHETHER THE SETTLEMENT WAS EQUAL TO, GREATER THAN OR ABOVE $10,000.00. BASED ON THE AMOUNT OF THE CLAIM, I WOULD EXPECT THAT IF THERE WAS A SETTLEMENT IT WOULD HAVE BEEN GREATER THAN $10,000.00. I DID NOT PARTICIPATE IN ANY SETTLEMENT WITH REGARD TO THIS MATTER.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- WEEDEN PRIME SERVICES, LLC. (CRD#: 146103) :: 8/16/2012 – 3/13/2014 :: GREENWICH, CT
- LIGHTSPEED TRADING, LLC (CRD#: 35519) :: 9/20/2007 – 8/10/2012 :: NEW YORK, NY
- LIGHTSPEED PROFESSIONAL TRADING LLC (CRD#: 39293) :: 8/6/2004 – 7/28/2008 :: NEW YORK, NY
- E*TRADE CAPITAL MARKETS LLC (CRD#: 111528) :: 6/29/2005 – 12/31/2005 :: CHICAGO, IL
- JEFFERIES & COMPANY, INC. (CRD#: 2347) :: 2/25/2004 – 6/10/2004 :: NEW YORK, NY
- HELFANT GROUP, INC. (CRD#: 867) :: 12/19/2003 – 2/25/2004 :: NEW YORK, NY
- BILTMORE SECURITIES, INC (CRD#: 25023) :: 11/27/1995 – 6/11/1996 :: FT. LAUDERDALE, FL
- WINDSOR REYNOLDS SECURITIES, INC. (CRD#: 6456) :: 9/7/1995 – 12/11/1995 :: HONOLULU, HI
- STRATTON OAKMONT INC. (CRD#: 18692) :: 2/24/1994 – 7/26/1995 :: LAKE SUCCESS, NY
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Lawrence Todd Smith, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Lawrence Smith
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Lawrence Todd Smith – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (2419838) for the broker – Lawrence Todd Smith
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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