Caroline Mohan, Former LPL Broker, Barred From Industry

Caroline Mohan, aka, Caroline Reyes (CRD# 2429577) is a former registered broker and investment advisor. Her last known employer was LPL Financial LLC (CRD#:6413) of West Palm Beach, FL. She was previously employed as a broker with Invest Financial Corporation (CRD#:12984) of Palm Beach Gardens and Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691) of Lake Worth, FL. She has been in the industry since 2011.

Mohan resigned from LPL Financial while under internal review for possible involvement with an outside business activity that she failed to disclose to the firm. Additionally, she was also alleged to have participated in private securities transactions.

On March 11th, 2021, LPL Financial filed a uniform termination notice for securities industries registration, or a Form U5, stating that Mohan voluntarily resigned during an internal review. As a result, FINRA initiated an investigation, and requested on-the-record testimony from her. Mohan declined to provide this information, in violation of FINRA policies.

In response for Mohan’s refusal to provide on the record testimony, FINRA issued a sanction barring Mohan from association with any FINRA member in all capacities. Mohan signed a letter of Acceptance Waiver And Consent (AWC) letter on November 17th, 2021. The bar went into effect on November 22nd, 2021.

Mohan has no other disclosures in her CRD.

Why Are A Broker’s Outside Business Activities Concerning?

As a rule, When a broker recommends a security, you probably assume that has been reviewed and vetted by the firm for which they work.

However, if a broker is engaged in business activities outside of auspices of their firm, this can cause a problem for any recommended securities, especially if they are private transactions. This is especially true of there is a conflict of interest involved.

As a rule, brokers are required to disclose in writing to their firm notice of any outside business activities they are engaged in. In compliance with FINRA’s Rule 2010, brokers are required under this rule to disclose their outside affiliations, and “observe high standards of commercial honor and just and equitable principles of trade.”

These activities include working as an officer, director, partner, employee, consultant or as an independent contractor with any for profit or non-profit organization.

Additionally, working with outside business activities that are unrelated to securities can also cause a problem. The issue becomes how much time a broker is spending on that outside business activity in relation to their normal everyday client business.

Did You Invest With Caroline Mohan?

Silver Law Group represents investors in securities and investment fraud cases. Scott Silver is the recipient of the daily Business Review’s Securities Lawyer of the year.  He is also been awarded Superlawyer, Legal Elite and is considered to be one of the best securities lawyers in Florida.

Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.