IN OR ABOUT APRIL 2015, CUSTOMER ALLEGES UNSUITABLE INVESTMENT IN PREFERRED STOCK OF COMPANY AND SUBSEQUENT LOAN TO THAT COMPANY (SOLD AWAY FROM BROKER DEALER). CUSTOMER ALLEGES THAT ADVISOR DID NOT PERFORM DUE DILIGENCE AND INVESTMENT HAS NOW LOST ITS FULL VALUE.

$75,000.00

$60,000.00

IN OR ABOUT APRIL 2015, CUSTOMERS ALLEGE UNSUITABLE INVESTMENT IN PREFERRED STOCK OF COMPANY AND SUBSEQUENT LOAN TO THAT COMPANY (SOLD AWAY FROM BROKER DEALER). CUSTOMERS ALLEGE THAT ADVISOR DID NOT PERFORM DUE DILIGENCE AND INVESTMENT HAS NOW LOST ITS FULL VALUE.

$77,000.00

$60,000.00

CLAIMANT ALLEGES BREACH OF FIDUCIARY DUTY, NEGLIGENCE, BREACH OF CONTRACT, BREACH OF IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING, NEGLIGENT MISREPRESENTATION, CONTROL OF PERSON LIABILITY AND FAILURE TO SUPERVISE WITH RESPECT TO INVESTMENT BY CLAIMANT IN PRIVATE PLACEMENT OF PREFERRED STOCK, WHICH WAS NOT OFFERED OR APPROVED BY LPL, MADE BETWEEN APRIL TO DECEMBER 2015.

$140,000.00

CLAIMANT ALLEGES MISAPPROPRIATION OF FUNDS, UNSUITABLE INVESTMENTS, SOLICITATION OF CLAIMANT TO INVEST IN PRIVATE PLACEMENT OF PREFERRED STOCK, WHICH WAS NOT OFFERED OR APPROVED BY LPL, AND FAILURE TO SUPERVISE BETWEEN 2005 AND 2015.

$1,500,000.00

$1,350,000.00

FINRA

Without admitting or denying the findings, Kuhlow consented to the sanction and to the entry of findings that he refused to produce documents and information and to appear for on-the-record testimony as requested by FINRA in connection with its investigation into the allegations that he had violated his member firm's policies by directing clients to an unapproved investment.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

Indefinite

3/16/2016

LPL Financial LLC

Discharged

Directed clients to unapproved investment, in violation of Firm policy.

MISAPPROPRIATION/CONVERSION OF FUNDS AND SUITABILITY-2004

$104,240.00

CLIENTS ALLEGED UNAUTHORIZED ACTIVITY IN THEIR ACCOUNTS - JANUARY 2003. DAMAGES UNSPECIFIED

CLAIM ABANDONED. CLIENT PURCHASED SEPARATE ACCOUNT. FULL DISCRETION WAS PROVIDED TO MONEY MANAGER TO PURCHASE A BALANCED INCOME PORTFOLIO INCLUDING FIXED INCOME TREASURY & FNMA POSITIONS. ALL PURCHASES WERE MADE BY SMITH BARNEY MONEY MANAGER BASED ON CLIENT'S OBJECTIVES. CLIENT ALSO PURCHASED MUTUAL FUND PORTFOLIO IN ORDER TO GENERATE INCOME. ALL MUTUAL FUNDS WERE PURCHASED WITH FULL DISCLOSURE WITH CONFIRMATIONS AND PROSPECTUSES DELIVERED.

CLIENT ALLEGES THE FINANCIAL CONSULTANT NEVER RECEIVED AUTHORIZATION TO PLACE A MUTUAL FUND TRADE. CLIENT WANTS TO BE REFUNDED FOR THE AMOUNT OF THE PURCHASE. THE TRADE WAS PLACED ON FEBRUARY 25, 2000.

$8,500.00

THE INVESTIGATION INDICATES THE CLIENT DID AUTHORIZE THE INVESTMENT PURCHASE. THE CLIENT WAS PROVIDED A COPY OF THE AUTHORIZATION HE SIGNED.

CLIENT ALLEGES THE FINANCIAL CONSULTANT ADVISED HER TO PURCHASE UNSUITABLE INVESTMENT BASED ON HER RISK TOLERANCE. THE TRADE WAS PLACED ON OCTOBER 5, 2000

$284,000.00

$1,225.70

IT APPEARS THAT THE INVESTMENT WAS SUITABLE AND FULL AND FAIR DISCLOSURE WAS PROVIDED. AS A GOODWILL GESTURE, THE CLIENT WAS REIMBURSED FOR THE PENALTY ASSESSED ON HER CD. THE BANK CD WAS USED TO PURCHASE THE UIT.

CLIENT CLAIMS THEY WERE NOT INFORMED OF THE PENALTIES REGARDING THE SURRENDER OF THEIR INVESTMENT. IN ADDITION, CLIENTS ALLEGE THE INVESTMENT PURCHASED WITH THE PROCEEDS WAS NOT SUITABLE.

$72,889.25

BASED ON THE INVESTIGATION, IT APPEARS THE CLIENT SIGNED SEVERAL DOCUMENTS ADDRESSING THE CHARGES FOR SURRENDERING THEIR INVESTMENT. PURCHASE OF THE NEW INVESTMENT APPROPRIATE AND FULL AND FAIR DISCLOSURE OF CHARGES AND FLUCTUATION WAS MADE.