Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Thursday, March 28, 2024 | Back issues
Courthouse News Service Courthouse News Service

SEC Fines Trader For Failing|To Protect Customers From Hackers

WASHINGTON (CN) - The SEC fined LPL Financial Corp. $275,000 for failing to protect its clients from online hackers, despite knowing of the dangers since 2006. Hackers traded or tried to make 209 unauthorized trades worth more than $700,000 in 68 LPL customer accounts, the SEC says; 10,000 LPL customers may have been compromised, the Commission says in the settled complaint.

LPL settled and agreed to pay the $275,000 without admitting anything. The SEC says it took this action because although LPL acknowledged its vulnerability to hackers in a mid-2006 audit, it failed to take action to protect its clients by the time the hacking began, in July 2007.

LPL is a financial services firm with headquarters in Boston, Charlotte and San Diego.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.

Loading...