Hi there! My role is to unravel the complex world of finance, making it as easy as pie. Now, let’s dive into the story of financial advisor William LeBoeuf who got into hot water with the Financial Industry Regulatory Authority (FINRA) for dipping his toes into private securities transactions without permission.
Examining LeBoeuf’s Private Securities Deals
My analysis starts in 2017 when LeBoeuf, linked with Merrill Lynch at the time, convinced a relative and client to invest in a real estate deal. Fast forward to 2019, after joining Cetera, he guided three clients to invest in a technology firm’s promissory note. The combined investments surpassed $1 million, but what’s critical is that LeBoeuf sidestepped one major rule: he never obtained clearance from his brokerage firms for these transactions.
He even went as far as establishing a company for pooling client funds for these promissory notes. Despite sharing the investment details with the clients, I’m concerned that LeBoeuf seemingly downplayed the potential risks, which could mislead investors into decisions they might not otherwise make.
Interestingly, LeBoeuf’s arrangement with the technology company promised him equity if certain conditions were met—essentially compensation. That being said, he didn’t earn those rewards in the end.
LeBoeuf’s Track Record at BrokerCheck
Since beginning his career in 1993, LeBoeuf has made quite the name for himself, reaching Merrill Lynch in 2009. He left on his own terms in 2019 and swiftly moved to Cetera Advisor Networks. His time there was cut short in December 2020 after he was discharged for the aforementioned private securities issues.
He then briefly offered advisory services with One Resource Group Private Advisor Group but stopped in mid-2020. Curiously enough, since then, he hasn’t associated with any other firm.
For a comprehensive view of LeBoeuf’s professional history, including any disclosures, I urge investors to verify an advisor’s credibility by checking their FINRA [BrokerCheck profile](https://brokercheck.finra.org/).
Wrapping Up the Case of LeBoeuf
LeBoeuf ultimately accepted a $12,500 penalty and a one-year suspension, neither confessing nor refuting FINRA’s findings. This is a cautionary tale for both advisors and investors alike.
In the financial world, trust is paramount. As Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it.” LeBoeuf’s actions are a clear reminder that shortcuts in financial transactions can be costly, not just in fines or suspensions but in one’s professional reputation.
A troubling financial fact to consider: some estimates suggest that bad financial advisors cost Americans billions each year in lost savings. It’s this that reinforces my goal of empowering you with clear and transparent financial knowledge.
In closing, remember to do your due diligence when choosing a financial advisor. A quick check of their [FINRA CRD number](https://brokercheck.finra.org/) can provide peace of mind, ensuring you’re in good hands. After all, in this industry, the right information is not just valuable—it’s essential.
