Barbara Leonard: $125K Complaint Against LPL Advisor

Galveston, Texas financial advisor Barbara Leonard (CRD# 4607044) has received multiple investor complaints alleging that she recommended unsuitable investments. Financial Industry Regulatory Authority records show that she is currently registered as a broker and an investment advisor with LPL Financial.

Ms. Leonard’s BrokerCheck report discloses two investor complaints. The most recent, filed in February 2024, alleges that as a representative of Avantax Investment Services, she recommended unsuitable direct investments. The pending complaint alleges damages of $125,000.

An earlier investor complaint, filed in 2021, alleges that as a representative of LPL Financial, she “induced” the customer to invest in a variable annuity product that she “did not fully explain.” The pending complaint alleges damages of $25,357.88.

In a statement included with the 2021 complaint’s disclosure, Ms. Leonard defends herself against the allegations, stating that the client “had received full disclosure and understood a variable annuity purchase, including surrender period, income caps, fees, riders, risks, and suitability considerations.” She adds that the client “alleged not understanding variable annuities” when asked to sign “post-approval paperwork,” and pushes back against the allegation that the customer “unknowingly” invested in the annuity. “[T]he client alleged he unknowingly purchased a variable annuity. However, the client’s investment history shows familiarity with variable annuities and ownership of variable annuities for at least seven years,” she writes. “LPL and Ms. Leonard deny the client’s demand for the return of all funds without the contract penalty and deny any wrongdoing on the advisor’s part.”

According to the Financial Industry Regulatory Authority, Barbara Leonard holds 21 years of securities industry experience. Based in Galveston, Texas, she has been a broker and an investment advisor with LPL Financial since 2018. She was previously registered with HD Vest Investment Services in Houston, Texas from 2003 until 2018. Her credentials include the passage of five securities industry qualifying exams: the Investment Company Products/Variable Contracts Representative Examination, or Series 6; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Investment Adviser Law Examination, or Series 65. She holds 14 state licenses. (Information current as of April 23, 2024.)

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