The Financial Industry Regulatory Authority has permanently barred Rudy Anguiano, a former LPL Financial advisor, from the brokerage industry after finding he misappropriated $1.73 million from two customers' accounts. The sanction, disclosed in a FINRA disciplinary action, stems from Anguiano's unauthorized transfer of client funds to a limited liability company he solely owned and controlled.
Anguiano, who had been registered with LPL Financial in Brea, California, from April 2022 until December 2025, was discharged by the firm for failing to disclose his outside business activities and for directing clients to private investments. According to his BrokerCheck profile, he had 19 years of experience in the financial services industry.
FINRA's investigation, initiated in December 2025 after LPL reported the discharge, revealed that between July 2023 and August 2025, Anguiano executed ten separate transfers from two client accounts into the bank account of his LLC. The first customer lost $1,528,000 across five transactions, while the second customer lost $203,000 in five additional transfers between September 2024 and May 2025.
According to FINRA's findings, neither customer authorized the transfers nor was aware that their funds were being redirected. Anguiano consented to the bar without admitting or denying the allegations, a standard practice in regulatory settlements. His attorney, Michelle Jacko, did not respond to requests for comment, nor did an LPL spokesperson.
LPL Financial, the largest independent broker-dealer by advisor headcount with more than 30,000 registered representatives, has reimbursed both customers in full, according to FINRA's statement. The case highlights ongoing compliance challenges at large firms where advisors occasionally breach industry rules governing outside business activities and private securities transactions.
The incident is not isolated. Another former LPL advisor, Michael C. Graham of El Paso, Texas, who was fired in June 2025 and died months later, faces at least nine pending investor arbitration claims related to outside business activities and sales. One client alleges Graham made misrepresentations on a real estate loan, seeking $25,000 in damages; the other eight complaints collectively allege nearly $840,000 in damages.
Industry experts note that while such cases are relatively rare among the tens of thousands of advisors, they underscore the importance of robust supervision and compliance protocols. FINRA has recently intensified scrutiny of outside business arrangements, as evidenced by a $1.6 million fine against Osaic-owned American Portfolios for supervision lapses involving unit investment trusts.
Advisors who engage in undisclosed outside business activities or private placements risk severe regulatory consequences, including permanent bars. FINRA's action against Anguiano serves as a reminder that the industry's self-regulatory body will aggressively pursue misconduct that harms retail investors.
For financial advisors and compliance professionals, the case reinforces the need for strict adherence to firm policies regarding outside business activities and client asset transfers. As lawmakers push for stronger ACATS fraud protections, the industry faces mounting pressure to safeguard client assets from unauthorized movements.
