LPL CM3000-

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singlemom2's picture
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Joined: 2010-08-12

Single mom of 2 here... Ex husband is at LPL. I am trying to understand the pay structure...  The Ex invested about 110mil in 2009. I'm  trying to figure out about what his commissions should be (ballpark). I'm dealing with a deabeat dad here and I am trying to get a grip on how his commissions are paid and why he isn't getting a regular 1099. I know he has a Master ID and a split and a shared ID. Any help understanding these statements would be greatly appreciated or how the commissions could be funneled. Thanks! singlemom2

rogerballs's picture
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Joined: 2010-01-04

hire an attorney!

BigFirepower's picture
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Joined: 2010-07-09

The CS Enforcement Division of your state should have no problems helping you. LPL would in no way impede in efforts to determine income, and/or garnish it.

singlemom2's picture
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Joined: 2010-08-12

Thanks. I have an attorney. After being subpoenaed LPL stated that the Ex is 100% over- riding all his commissions to another Rep. Which created a $0.00 1099 for the Ex. So we are submitting a new subpeona to LPL... but the subpeona is only as good as the lingo in it. If anyone can give me "terms" or "report names" that we need to ask LPL for that would be helpful. I need something that shows the breakdown of commissions generated by ID number/ over rides/ commissions paid. Very sad that he's trying to appear insolvent instead of helping take care of the children.

BigFirepower's picture
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Joined: 2010-07-09

singlemom2 wrote:Thanks. I have an attorney. After being subpoenaed LPL stated that the Ex is 100% over- riding all his commissions to another Rep. Which created a $0.00 1099 for the Ex. So we are submitting a new subpeona to LPL... but the subpeona is only as good as the lingo in it. If anyone can give me "terms" or "report names" that we need to ask LPL for that would be helpful. I need something that shows the breakdown of commissions generated by ID number/ over rides/ commissions paid. Very sad that he's trying to appear insolvent instead of helping take care of the children. Your ex then is recieving illegal income from another rep, violating IRS code, both reps are. I'd think an attorney could spot that pretty easy. Also, you may find FINRA of assistance, a regulatory body in our industry. Frankly, a conversation with your ex, to disarm the situation is in order. If you bring up the IRS and FINRA element, he'll probably come back in line. But, no offense, I'm sure your ex has his side of this story.... Good luck, for your kids sake, as they need to be financially supported AND have visitation from their father. I went through this personally, and paid CS for 16 yrs.

singlemom2's picture
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Joined: 2010-08-12

I don't think it's illegal... is it? As long as someone is paying taxes on the income. Otherwise LPL wouldn't allow the overrides and split rep id situation. But I do know it's not very nice to transfer all commissions to someone else to avoid a 1099 to determine child support. My goal is only to get support for the children not to ruin his career.I believe his ethics will get him in the end. He already has U4 marks for going to arbitration for forgery of annuity delivery confirmation and allowed to resign from another firm for mutual fund trading practice.True. Each of us has our side of the story for the divorce. But in the case of caring for the children... regardless if we are married or not the children should benefit from the love and support of both parents. He has ample visitation however he declines to use it at this time.

rogerballs's picture
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Joined: 2010-01-04

singlemom2, Have your attorney contact LPL and ask for his last 2 years production runs. He has to be producing or else LPL would not keep him on as a representative. Secondly, who is getting the overrides, is it his OSJ ( manager). Your attorney needs to contact FINRA at www.finra.org and also contact the State or SEC if he is registered as a Registered Investment Advisor (RIA). Your local bar association should be able to recommend an attorney who specializes in securities law (compliance) they can talk the talk with LPL and their compliance department.As mentione dthere are 2 sides to every story. But this is just harming the kids! and foir that there is no excuse, they did no ask to be born. Trust me I have not spoken to my father since 1982!Best of luck to your children!By the way how did you find this site?   

jackofalltrades's picture
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Joined: 2009-05-20

singlemom2 wrote:I don't think it's illegal... is it?   Do you really have a lawyer...? For starters: Fraud, Misrepresentation, Tax evasion for purposes of defrauding a ______... those are just the felonies (ie: jail for 1 yr or more)... start throwing in ethical and regulatory violations and various statutory misdemeanors... and well. I have a good friend who owns a large divorce firm and I hear a ton of stories, many involving this situation and I am a 2nd year law student... so I apologize if I sound insensitive but, either you need another lawyer or something is fishy. Your lawyer likely won't get paid unless he follows the money and you contacting LPL directly, IMHO, will likely only hurt you down the road. I wish you well, but there is a process to all of this and it is very pragmatic... Many lawyers I know would shi-ate a brick if they even knew you posted pertinent details on a web forum.GL and all the best, J

chickenfeed's picture
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Joined: 2009-02-06

You're a law student???

singlemom2's picture
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Joined: 2010-08-12

 Chickenfeed: Is your question for Jackofalltrades? If it is... that's kinda what I was thinking. ;)

jackofalltrades's picture
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Joined: 2009-05-20

chickenfeed wrote:You're a law student??? Yep, finishing my 2nd year shortly...

chickenfeed's picture
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Joined: 2009-02-06

So wait... you are an advisor who cold calls all day and you go to law school??1. Why go to law school?2. When do you find the time?

jackofalltrades's picture
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Joined: 2009-05-20

  1. It will substantially increase my business and I have learned things (in the past 2 yrs) that will save my ace in the future. I can afford to pay for it now, as I go. I am intrigued by the law and those who really understand it.2. I go part time... basically nights and weekends... the down fall is it's gonna take me 4 yrs instead of 3..the pro is I can still do 50-60 k a mth...To be honest the 1st year wasn't as bad... I think I was prepared for the worst case scenario... everyone thinks I am crazy, I like to prove them wrong...but this year has been very tough. For the record, I try to cold call day.... Fortunately, after 10 yrs in the biz I have a few people to CC for me. 

BigFirepower's picture
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Joined: 2010-07-09

jackofalltrades wrote:  1. It will substantially increase my business and I have learned things (in the past 2 yrs) that will save my ace in the future. I can afford to pay for it now, as I go. I am intrigued by the law and those who really understand it.2. I go part time... basically nights and weekends... the down fall is it's gonna take me 4 yrs instead of 3..the pro is I can still do 50-60 k a mth...To be honest the 1st year wasn't as bad... I think I was prepared for the worst case scenario... everyone thinks I am crazy, I like to prove them wrong...but this year has been very tough. For the record, I try to cold call day.... Fortunately, after 10 yrs in the biz I have a few people to CC for me.  Dang, you impress me. What is your specialty/value added that your pursue as an FC?

BigFirepower's picture
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Joined: 2010-07-09

singlemom2 wrote:I don't think it's illegal... is it? As long as someone is paying taxes on the income. Otherwise LPL wouldn't allow the overrides and split rep id situation. But I do know it's not very nice to transfer all commissions to someone else to avoid a 1099 to determine child support. My goal is only to get support for the children not to ruin his career.I believe his ethics will get him in the end. He already has U4 marks for going to arbitration for forgery of annuity delivery confirmation and allowed to resign from another firm for mutual fund trading practice.True. Each of us has our side of the story for the divorce. But in the case of caring for the children... regardless if we are married or not the children should benefit from the love and support of both parents. He has ample visitation however he declines to use it at this time. Of course it's illegal! Violation of gifting laws, avoidance of payroll taxes, yada, yada.... Seriously, take the advice of some others here, and make sure you have a good attorney. Also, the state you reside in should have significant resources available to you. LPL, trust me, they aren't the kind of outfit that would allow anything illegal/immoral going on.

Indyone's picture
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Joined: 2005-05-31

You idiots have no idea if this is illegal or not.  I don't believe for a minute that a 100% override arrangement is in the least bit illegal.  Frankly, that's how I add employees.  I take a 100% override and then pay them a percentage of their production on a W-2.  LPL themselves suggested that method of avoiding a 1099 for an employee who wants to be a conventional W-2 employee.  I would tell you that the purpose of the override relationship is much more important in determining if the ex is doing something illegal.  If there is a secret agreement for the overriding rep to defer payment to the ex until singlemom is off his tail, that's an entirely different matter, but the override arrangement itself is not in the slightest bit illegal or uncommon.Singlemom, be VERY careful about using ANY information you glean on this forum.  There is a reason you pay an attorney to represent you.

BigFirepower's picture
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Joined: 2010-07-09

Indyone wrote:You idiots have no idea if this is illegal or not.  I don't believe for a minute that a 100% override arrangement is in the least bit illegal.  Frankly, that's how I add employees.  I take a 100% override and then pay them a percentage of their production on a W-2.  LPL themselves suggested that method of avoiding a 1099 for an employee who wants to be a conventional W-2 employee.  I would tell you that the purpose of the override relationship is much more important in determining if the ex is doing something illegal.  If there is a secret agreement for the overriding rep to defer payment to the ex until singlemom is off his tail, that's an entirely different matter, but the override arrangement itself is not in the slightest bit illegal or uncommon.Singlemom, be VERY careful about using ANY information you glean on this forum.  There is a reason you pay an attorney to represent you. Is there a reason for the name calling, aggressive behavior? Surely you're a bit more civil in person right?

Indyone's picture
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Joined: 2005-05-31

Yes I am, but I'm a little like Bill Singer when I see obviously wrong information posted as if it is gospel.  It probably didn't help that a guy installing a drainline for my new house cut through the telephone, gas and water lines this morning.

BigFirepower's picture
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Joined: 2010-07-09

Good luck with that. I'm sure it will work out. Said lady, she sounds like her ex is hiding income. That money, if he's getting it, needs to be properly and legally redistributed to him, or it is illegal. I paid cs for about 16 yrs, and had to go through the ringer. Had my kid w/h from me for 2 yrs, even though I'd never missed a payment. Daughter now 18, and guess what? Will not speak with mother... What comes around, goes around.  

singlemom2's picture
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Joined: 2010-08-12

Trust me guys I understand that there are both bad ex-wives and ex-husbands out there. I do. My situation is fairly simple. We are divorced. We have a visitation agreement and I stick to it. CS payment or not... he generally likes to run 90 days late. I shelter the children from the adult issues. Like it or not he should be supporting our children at his "real" income. Married or not it still takes the two of us to raise them. The override isn't illegal- just not nice. There was not a 100% override before the divorce. It was "effort" to pretend to be 20K employee. I'm not asking for maintenance or his retirement... infact I walked away from all that. I just want to be able to take of the kiddos.Yes, my ex tried to pass a 20K W2 from his father as his only income to the courts. But he's always been a bigger producer. While he was not an excellent husband to me and I question his ethics... he is an excellent salesman. I know the market isn't what it was in the 90s but he still manages to produce on a 90/10 payout. I've been in the business too. I worked as a recruiter in the industry and also helped roll his book when he went independent in 1999 prior to being a stay at home mother/wife.After the divorce he merged his book with his father's and tried to hide his real production numbers. My attorney is on the case. All I was asking for is the right lingo when asking for commission/production/override reports. Just doing research...No harm in that. I appreciate the comments and all the help.

jackofalltrades's picture
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Joined: 2009-05-20

Indyone wrote:You idiots have no idea if this is illegal or not.  I don't believe for a minute that a 100% override arrangement is in the least bit illegal.  Frankly, that's how I add employees.  I take a 100% override and then pay them a percentage of their production on a W-2.  LPL themselves suggested that method of avoiding a 1099 for an employee who wants to be a conventional W-2 employee.  I would tell you that the purpose of the override relationship is much more important in determining if the ex is doing something illegal.  If there is a secret agreement for the overriding rep to defer payment to the ex until singlemom is off his tail, that's an entirely different matter, but the override arrangement itself is not in the slightest bit illegal or uncommon.Singlemom, be VERY careful about using ANY information you glean on this forum.  There is a reason you pay an attorney to represent you. The only idiot is one who beleives a guy overrides his commision and receives $0 income. What a nice guy he is. For the record I never said anything about overrides being illegal.(only fraud, misrep, and tax evasion assuming single mom is accurate in her assertion)Learn to read w/ precision, especially before rambling on because one time you did an override to a rep. There is something called "good faith" which is detrimental here.Oh and for the record, you are nothing like Bill Singer....bwah.   

babu41's picture
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Joined: 2010-08-31

 I'm dealing with a deabeat dad here and I am trying to get a grip on
how his commissions are paid and why he isn't getting a regular 1099. I
know he has a Master ID and a split and a shared ID

B24's picture
B24
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Joined: 2008-07-08

I guess it's possible that he is 100% overriding his commissions, and then having the amount owed to him stuck into a brokerage account under someone else's name.  However, someone (presumably whoever overrode the commissions) would have had to pay taxes on that revenue, and I doubt that his "accomplice" would get involved in tax evasion, unless there was something in it for him.  I suppose the accomplice could just pay the taxes, and move the after-tax amount into a brokerage account in his name.  But at that point, why not just pay the child support?  Something just sounds wrong here. 

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