Bankruptcy

Discharged

i filed the bankruptcy to relieve me of the burden of Kestra Investments and National Securities, "Broker Dealers", forgivable loans they gave me for signing with them as an independent broker and not fulfilling my term. as a result of the alledged FINRA allegation.

FINRA

Without admitting or denying the findings, Padilla consented to the sanctions and to the entry of findings that he set up and used unapproved email accounts to correspond with his member firm's customers about securities business and circumvented its supervision of his business. The findings stated that Padilla sent numerous electronic communications via the email accounts to firm customers regarding firm business such as, among other things, account funding confirmations, portfolio recommendations, fee summaries, and trade confirmations. Padilla hid the email accounts from the firm during branch audits. The findings also stated that Padilla caused the firm to fail to comply with its recordkeeping obligations by using the email accounts to conduct firm business which prevented it from preserving records of these communications. The findings also included that Padilla made misrepresentations on multiple firm annual compliance questionnaires indicating that he only used his firm email address for securities business and client-related correspondence.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$10,000.00

Suspension

All capacities

5 months

6/15/2020

11/14/2020

FINRA

Respondent Donald Padilla failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Letter

Suspension

All Capacities

n/a

1/22/2020

9/18/2020

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Donald Padilla is suspended on January 22, 2020 for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance. Suspension lifted on September 18, 2020.

Client's son alleged that the firm's client suffered from diminished capacity at the time she purchased a variable annuity during December 2016

$100,000.00

Client's son alleged that the firm's client suffered from diminished capacity at the time she purchases a variable annuity during December 2017.

$154,700.00

Kestra Investment Services, LLC

Discharged

Failure to follow firm policy, specifically in relation to correspondence requirements and marketing designations.

LPL FINANCIAL LLC

Voluntary Resignation

Representative resigned while the Firm was conducting a review of the use of an unapproved email address as well as the removal and/or concealment of such emails from office computers prior to an announced LPL Branch Exam.

When I originally joined LPL, we intended to use an Outlook email system for all of our LPL business purposes. However, we learned that implementing the system through LPL's approved vendors was going to be very expensive and we chose not to use it for that purpose. Instead, we decided to use the Outlook communication system solely for internal purposes between members of the firm, such as calendars, and personal emails and messages. We also used it for some insurance business that was conducted outside of LPL but was fully disclosed to LPL. It was never intended to be nor was it used for communications with securities account customers. Before we began using LPL's Compliance Max system, it was my understanding that our Outlook communication system was indeed approved for internal use. In fact, an LPL employee told us that our system was approved since 2/8/2011 when our DBA was approved. We have since been told that it was not. As soon as we were advised of the problem and before making the decision to leave LPL, we made efforts to bring our system in full compliance with LPL's requirements. As for the deletion of emails on our Outlook system, this was entirely a routine house-keeping issue and had nothing to do with any upcoming branch inspection. As noted above, the Outlook email was not used for any LPL business, but was used mainly for personal and calendaring matters. Email was routinely deleted when no longer of any relevance. There was not any intention to conceal these emails from any LPL supervisory representatives and I am confident that any deleted emails would have been of no interest to anyone conducting a branch inspection.

CLIENT ALLEGES THAT VARIABLE ANNUITY PURCHASE IN MAY 2007 WAS NOT FULLY EXPLAINED TO HER AT TIME OF PURCHASE. CLIENT SEEKS RETURN OF INVESTMENT WITHOUT PENALTY.

CLAIM DENIED AS NON MERITORIOUS