FINRA fined and suspended Southern California broker Jeffrey Wade Lundstrom for failing to disclose tax liens in excess of $100,000, following Lundstrom's initial failure to respond to FINRA's request for on-the-record testimony. Lundstrom served as a broker for Signator Investors of San Diego from 2016 through 2018. Prior to this, Lundstrom carried a registration with Transamerica Financial Advisors of Murrieta, CA from 2001 until commencement of his Signator registration 2016.
According to AWC #2018057708002, Signator Investors permitted Lundstrom to resign from the firm on December 30, 2017 after purportedly failing to indicate two federal tax liens against him filed earlier that year and totaling approximately $106,000.
Investigators wrote that Lundstrom's liens remain outstanding, and that Lundstrom willfully failed to timely amend his industry Form U4 to report the existence of these liens in contravention of industry rules. Lundstrom (CRD #2377839)'s other business activities per BrokerCheck include insurance sales of Pacific Life Policies in Murrieta, California, and ORBA Financial Management, located in Gold River, CA.
What may appear to be an innocuous failure to report liens, unsatisfied judgment, financial compromises, and other such matters can potentially harm investors when a representative with an undisclosed motive, such as a debt or conflict of interest, recommends an unsuitable product, such as a complex securities vehicle, which associated with high and unnecessarily excessive fees.
For example, this is a link to the history of "Fees" entries in the Stocklaw Blog. The most recent entry from June 2019, for instance, pertains to Cetera Advisors ex-stockbroker George Craig Merhoff, whom FINRA barred in the wake of $3.8 million paid in settlements to customers who alleged that Merhoff's negligence, fraud, material omissions of fact, and breach of contract/fiduciary duty contributed to significant damages.
Like Lundstrom, Merhoff had endured a tax lien (Merhoff's was a state tax lien from 2018).
Wedbush Securities ex-rep William Mark Heiden is an example of a broker who put clients at risk while enriching himself through bonuses and commissions.
If you have invested with former Signator Investors (San Diego) broker Jeffrey Lundstrom or with any registered representative or a financial adviser who failed to disclose financial problems such as a tax lien that may have driven a conflict of interest leading to unsuitable investments and excessive fees/commissions that were harmful to your interests, please call our experienced FINRA arbitration attorneys at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.