SEC Bars Ex-LPL Rep Who Pleaded Guilty to Witness Tampering
What You Need to Know
The SEC has barred an ex-LPL broker who was already barred by FINRA and sentenced to prison.
The ex-broker pleaded guilty last year to three counts of wire fraud and one count of aggravated identity theft.
But he scrapped the deal and was charged again for the same alleged crimes, this time with witness tampering added.
A former LPL Financial broker who recently pleaded guilty a second time to charges related to a scheme in which he allegedly stole over $2.8 million from six clients has now been barred from the industry by the Securities and Exchange Commission.
In an order filed Monday, the SEC said James K. Couture, 44, formerly of Sutton, Massachusetts, is “barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.”
Couture is also barred from “participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock,” according to the SEC order.
LPL did not immediately respond to a request for comment on Tuesday.
Witness Tampering, Fraud, Identity Theft
Couture pleaded guilty last year to three counts of wire fraud and one count of aggravated identity theft, according to the U.S. Justice Department and court documents in U.S. District Court for the District of Massachusetts.
As part of a plea agreement, he was to serve 66 to 91 months in prison.
However, Couture decided about one month later to cancel a scheduled hearing and scrap the deal, according to a court filing on July 6, 2021.
Couture was initially charged in connection with the scheme in June 2021. However, after those initial charges were filed, he “engaged in witness tampering by creating fake documents purported to be for his clients’ accounts and providing false information to at least one victim in the case for approximately six months,” the Justice Department said in September.
As a result, Couture was “subsequently charged with witness tampering in connection with his efforts to deceive” that victim on Jan. 14, 2022, according to the Justice Department. Consequently, he now faces a longer prison sentence.
In September, Couture pleaded guilty to one count of witness tampering, four counts of wire fraud, four counts of aggravated identity theft and one count of investment advisor fraud.
The charge of witness tampering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, according to the Justice Department.
Each charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater, the Justice Department noted.
