Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Anthony Liddle (Liddle), previously associated with Landolt Securities, INC., has at least 3 disclosable events. These events include 2 customer complaints, one regulatory event, alleging that Liddle recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $262,000.00 on June 27, 2024.
Customer alleges that representative made misrepresentations and misappropriated the customer’s investments.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $1,683,727.78 on April 15, 2024.
Claimants are demanding damages from Western International Securities and Landolt Securities related to fraud and misappropriation of funds perpetrated by Tony Liddle, for which Mr. Liddle alone was ordered to pay restitution.
FINRA BrokerCheck shows a final customer complaint on August 30, 2023.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted against Anthony B. Liddle (“Respondent” or “Liddle”). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the “Offer”) which the Commission has determined to accept. The commission finds that on January 25, 2023, Liddle pled guilty to one count of wire fraud and one count of money before the United States District Court for the Western District of Wisconsin. On July 7, 2023, in Crim. No. 3:23-cr00009-jdp, a judgment in the criminal case was entered against Liddle. He was sentenced to a prison term of 97 months on each count, to run concurrently, followed by a three-year term of supervised release and ordered to make restitution of $1,662,041.80 with any additional restitution to be ordered within 90 days. The counts of the criminal information to which Liddle pled guilty alleged that between December 2016 and May 2022, Liddle, as managing member and control person of Prosper Wealth Management, LLC, a then state-registered investment adviser, defrauded advisory clients by using client funds on personal expenses and to pay down debt and having not invested the funds as promised. Liddle also used client funds to pay other investors and clients. On August 4, 2022, the Wisconsin Department of Financial Institutions – Division of Securities issued a summary order permanently barring Liddle from registration and from making or causing to be made in or from Wisconsin to any person or entity any further offers or sales of securities unless and until such securities qualify as federal covered securities, among other prohibitions. The Wisconsin Order found, among other things, that from June 2019 through May 2022, Liddle while associated with an SEC-registered broker-dealer, solicited $1.9 million from 13 investors, purportedly for the purchase of bonds. Liddle did not use the funds as represented, and instead used the investor funds for his personal expenses, without authorization.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail investor’s best interest.
An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Liddle has been in the securities industry for more than 11 years. Liddle has been registered as a Broker with Landolt Securities, INC. since 2020.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.
