Ex-LPL Advisor Bradley Goodbred Sentenced after Fraud Charges

Former LPL Advisor Bradley Goodbred Sentenced to Six Years in Prison for Stealing $1.3 Million from Elderly Client

The White Law Group continues to investigate potential securities claims involving former LPL Financial advisor Bradley Goodbred.

Bradley A. Goodbred, a former financial advisor with LPL Financial, has reportedly been sentenced to six years in prison for stealing nearly $1.3 million from an elderly client with dementia, according to a statement from the Kendall County State’s Attorney’s Office.

Goodbred, 57, a resident of Plano, Illinois, appeared before Judge Jody Gleason on July 22, where he was sentenced to six years in the Illinois Department of Corrections and one year of mandatory supervised release. In April, Goodbred entered a blind plea of guilty to financial exploitation of an elderly person, a Class 1 felony under Illinois law.

LPL Financial Fired Goodbred in 2021

Goodbred was registered as a broker and investment advisor with LPL Financial from October 2009 to January 2021, when he was discharged by the firm for allegedly using an undisclosed power of attorney to facilitate distributions from a customer’s outside accounts. According to FINRA BrokerCheck, Goodbred had the elderly client, born in 1924, assign him power of attorney in 2010. He then allegedly used that authority to persuade her to invest in Northern Lights Properties, LLC, a company he owned.

Rather than invest the client’s funds as promised, Goodbred reportedly transferred the money into his personal accounts, using the funds for his own benefit. Between 2011 and 2020, authorities say Goodbred misappropriated over $1 million from the client. The Securities and Exchange Commission (SEC) filed a civil complaint against him in September 2022, alleging violations of securities laws related to the fraudulent scheme.

SEC and FINRA Actions Against Goodbred

According to the SEC, Goodbred has repaid $454,141 of the stolen funds. The trustee successor of the victim reportedly filed an arbitration case against LPL Financial, which the firm settled in August 2022 for the remaining balance.

In February 2021, FINRA permanently barred Goodbred from the securities industry after he failed to cooperate with its investigation into his termination from LPL.

Criminal Charges for Elder Financial Exploitation

Goodbred was arrested in 2022 and charged with more than 20 counts of theft and financial exploitation of an elderly person or person with a disability. He was released on a $25,000 bond pending trial.

Authorities said Goodbred approved withdrawals from the client’s trust account, moved those funds to her checking account, and then had checks issued to his company. Prosecutors emphasized that none of the money was used for the benefit of the client, who suffered from dementia.

Bradley Goodbred Outside Business Activities

According to FINRA records, Goodbred was involved in several outside business activities, including:

• Northern Lights Properties, LLC
• Midwest Plan Advisors
• Midwest Wealth Management

These businesses were not disclosed or approved as required by FINRA regulations, further contributing to the misconduct and supervisory failures cited by regulators.

Can I Recover Investment Losses with LPL Financial?

The White Law Group is currently investigating potential securities fraud claims involving Bradley Goodbred and the possible liability of LPL Financial for failure to supervise.

Broker-dealers have a duty to supervise their financial advisors to ensure compliance with FINRA rules and securities laws. If a firm fails to detect or prevent misconduct, it may be liable for investment losses due to negligent supervision.

Free Consultation with a Securities Fraud Attorney

If you invested with Brad Goodbred or LPL Financial and are concerned about your investments, you may have grounds for a claim to recover losses. For a free consultation with a national investment fraud attorney, call The White Law Group at 888-637-5510 or visit www.whitesecuritieslaw.com.

The White Law Group is a national securities arbitration, investor protection, and securities fraud law firm with offices in Chicago, Illinois and Seattle, Washington.

Frequently Asked Questions (FAQs) : Bradley Goodbred

Who is Bradley Goodbred?

Bradley A. Goodbred is a former LPL Financial advisor from Illinois who was sentenced to six years in prison for stealing $1.3 million from an elderly client. He has been permanently barred by FINRA and is facing a civil enforcement case by the SEC.

Can I sue LPL Financial for my losses?

Possibly. If you invested with Bradley Goodbred through LPL Financial and suffered losses, you may have a claim for negligent supervision against the firm. Contact an attorney at The White Law Group to evaluate your options.

What is elder financial exploitation?

Elder financial exploitation involves the illegal or improper use of an older adult’s funds or property. Financial advisors who exploit elderly clients, particularly those with cognitive impairments like dementia, can face criminal and civil penalties.