An LPL Financial customer has filed a Finra complaint requesting more than $3.53 million in damages based on allegations that the customer’s broker forged the customer’s signature on a line of credit and diverted the funds.

LPL fired the broker, Richard Allen Ceffalio Jr., when the arbitration claim was filed with Finra in March, according to a press release issued by Vernon Litigation, the law firm representing the customer.

Ceffalio worked at LPL in Arlington Heights, Ill., from November 2019 until his termination at the end of May 2024, according to BrokerCheck. Dually registered, he continues to work as an investment advisor at Providence Private Wealth in Arlington Heights, where he is founder and managing director, according to the firm’s website. Providence is affiliated with NewEdge Advisors.

Ceffalio did not immediately return a call for comment.

On May 28, an LPL customer alleged that Ceffalio forged the client’s signature on a line of credit agreement in March 2022 and then directed those funds outside of the client’s accounts, the Finra disclosures website said. 

Then on May 31, LPL discharged Ceffalio, with the explanation being he “solicited loan from customer without notice to and approval from firm. Submitted trade corrections containing inaccurate basis for trade correction.”

Also on May 31, another customer dispute was registered on BrokerCheck, alleging that during an unspecified time, the Ceffalio made unsuitable recommendations that caused substantial losses.

It is unclear if this customer is the same as the customer of the May 28 dispute. Vernon Litigation did not return a request for more information.

Ceffalio has two other Finra disclosures. One on July 21, 2023, alleged customers did not understand their annuities and ended up overspending on their accounts. The disclosure indicates the incident involves the same customers as the May 28 dispute, as the allegations go on to say, “On May 21, 2024, counsel for the client alleged that Mr. Ceffalio was ‘caught forging documents.’”

On Jan. 31, 2000, when Ceffalio worked at A.G. Edwards & Sons, a customer alleged mismanagement of the account and negligence. That complaint was closed with no action taken, according to BrokerCheck.

Ceffalio entered the industry as a broker in June 1995, working at Citicorp Investment Services until March 1997. He then went to A.G. Edwards from March 1997 to January 2008 as a dually registered advisor, followed by a short stint at Wachovia Securities from January 2008 to October 2008. From October 2008 to November 2012, Ceffalio worked at UBS Financial Services, followed by Wells Fargo Clearing Services from November 2012 to November 2019, when he joined LPL.