$5.5-Mln Oppenheimer Broker Jumps Early to LPL After Word of Move Leaks

August 10, 2021

In a testament to the difficulties that brokers encounter in making an attempt not to idea off their companies forward of a planned departure, an Oppenheimer broker in Newport Beach, California, was eased out on Friday following the business caught wind of his impending exit, according to a source acquainted with the shift.

Kenneth South, a 36-yr marketplace veteran, accelerated his move and had joined LPL Monetary by Monday, in accordance to the supply and BrokerCheck registration data. South, who was stated to have been one of Oppenheimer’s premier producers in California, verified the transfer in a well prepared statement and claimed he managed a roughly $550 million e-book that threw off all over $5.5 million in fees and commissions per year.

“We have been arranging and planning for our changeover to LPL for a number of months,” South stated in the statement, which did not straight deal with the source’s claims about an early exit. “We are energized about this future chapter in our small business and search forward to serving our shoppers from our new office.”

South, whose previous staff bio says he spends his spare time browsing, is calling his new observe Tower 68 Financial Advisors, a reference to the numbered lifeguard towers alongside Los Angeles seashores. He moved alongside with two consumer associates, Loaded Dougherty and Peter Jones, and joined LPL’s year-outdated Strategic Wealth Companies channel that supplies more marketing and advertising and operational support in trade for a flat charge.

A spokesman for Oppenheimer did not return a request for remark.

At Oppenheimer, South had been aspect of a six-person workforce known as The South Team that incorporated three other advisors, John D. Mann, Michael Legaspi Jr., and Mark J. Roman, and two client associates, in accordance to a previous workforce site that was no for a longer period active on Tuesday. Achieved at South’s former Oppenheimer department, Mann verified the rest of the staff stayed behind but declined more remark.

South, who had joined Oppenheimer in 2006 right after staying fired from Smith Barney, is joined at the new exercise by Steven Arcos, a previous Oppenheimer Los Angeles-space department supervisor. Arcos, a 21-yr Oppenheimer vet, experienced remaining in February to be part of B. Riley Wealth Administration but exited right after 7 months to co-found Tower 68, according to his LinkedIn.

Arcos did not return a ask for for remark. The supervisor of Oppenheimer’s Newport Beach front department, Michael C. Casey, who joined Oppenheimer in 2017 in the aftermath of a hedge fund investment that went awry at the Merrill Lynch Las Vegas complex he experienced managed, also did not return a request for comment.

South started out his career at E.F. Hutton in 1985 and has 9 ‘disclosure’ situations on his BrokerCheck record. Eight are customer complaints, which include five that ended up denied and a few that have been settled. The most recent, a assert of unauthorized investing from January, was denied by Oppenheimer, according to BrokerCheck.

The ninth is South’s termination from Smith Barney, then a section of Citigroup, in 2006 for mismarking gross sales of Citigroup stock in client advisory accounts as unsolicited, in accordance to BrokerCheck. The broker claimed the trades resulted in no client grievance or consumer harm.

Oppenheimer experienced 1,004 brokers at the finish of June, down 2% from 1,029 a year in the past, according to its most current earnings report.

LPL served 19,114 unbiased brokers at the conclude of June, up 1,442 from the conclude of the very first quarter and up 2,141 calendar year about calendar year, according to the company’s outcomes.

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