The Securities Arbitration Law Firm of Klayman & Toskes Investigates LPL Financial and VALIC Financial Advisors Relating to the Supervision of Jodie Linn Miller and the Sale of Tri-Med Corporation Notes

The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, announced today that it is investigating LPL Financial (“LPL”) (NasdaqGS: LPLA) and VALIC Financial Advisors (“VALIC”), a part of American International Group (NYSE: AIG), relating to the supervision of Jodie Linn Miller (“Miller”) (CRD No. 4772684) and the sale of Tri-Med Corporation (“Tri-Med”) Notes. On November 12, 2014, Miller entered into a Letter of Acceptance, Waiver and Consent (“AWC”) with the Financial Industry Regulatory Authority (“FINRA”), in connection with allegations of selling away securities in Tri-Med. Selling away occurs when a broker sells securities products to her customers without prior approval from her broker-dealer. In the AWC, Miller consented to a suspension from association with any FINRA member for 18 months, and a fine of $53,225, which includes disgorgement in the amount of $38,225, plus interest.

According to the AWC, “During 2012, Miller participated in private sales of $764,500 worth of Tri-Med Corporation (“Tri-Med”) securities for which she earned commissions of approximately $38,225. She did not notify VALIC or LPL of her participation, and did not obtain approval from either firm to participate, in the private security sales. She therefore violated NASD Rule 3040 and FINRA Rule 2010.” The AWC adds that “Tri-Med’s business involved financing account receivables for personal injury claims. Tri-Med purchased from medical providers, at discounted rates, outstanding receivables relating to personal injury claims, with the exception that insurers would pay the entire receivable once the claim was resolved through litigation or settlement. To fund its purchases, Tri-Med sold interest-bearing notes collateralized by Letters of Protection (“LOP”). The LOPs allegedly assured that the receivable would be repaid from any proceeds obtained as a result of the settlement or litigation.”

Finally, the AWC states, “In March 2014, Florida’s Office of Financial Regulation (“OFR”) sued Tri-Med and five of its officers, alleging that they were selling unregistered securities and operating a Ponzi scheme. Among other things, medical providers from whom Tri-Med supposedly purchased claims stated that they had never done business with Tri-Med. OFR obtained a temporary restraining order against Tri-Med and the court has appointed a receiver to marshal the company’s assets.”

During the time period at issue, Miller was registered with FINRA broker-dealers LPL and VALIC. Under FINRA Rules, LPL and VALIC were obligated to properly supervise the activities of Miller during the time she was registered with the brokerage firms. Accordingly, LPL and/or VALIC may be liable for failing to supervise Miller’s activities while registered at the respective brokerage firms.

If you have information relating to this investigation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at www.nasd-law.com.