Linda Lucille Sokol Francis Barred by FINRA Following Discretion Violations and Customer Disputes

Linda Lucille Sokol Francis (CRD# 811073), a former investment adviser and broker based in Brookfield, Illinois, has been permanently barred from the securities industry by the Financial Industry Regulatory Authority (FINRA). This enforcement action followed her refusal to cooperate with a FINRA investigation into her use of discretion in customer accounts without written authorization.

The action and the broader history of client complaints may be of particular concern to investors who relied on her financial advice.

Sokol Francis Executed Trades in Customer Accounts Without Prior Authorization

On March 25, 2025, FINRA entered a final regulatory action against Sokol Francis. According to the BrokerCheck report, the investigation stemmed from a termination notice filed by her former employer, LPL Financial LLC. The firm alleged that she used discretion in brokerage accounts without proper written authorization, a violation of firm policy and industry regulations.

With a discretionary account, an investment adviser is allowed to buy or sell securities and make other investment decisions without obtaining permission for the trades from their client. It is legal to exercise this discretion only if the client has signed a written authorization form that outlines the scope of the adviser’s authority, and the firm has accepted the discretionary account. Sokol Francis had not obtained either authorization.

FINRA Sanction and Permanent Bar of Sokol Francis

Sokol Francis declined to provide documents and information FINRA requested during its investigation. Without admitting or denying the findings, she consented to a sanction through FINRA’s Acceptance, Waiver and Consent (AWC) process. As a result, she received a permanent bar from acting in any capacity in the securities industry.

Customer Disputes and Complaints About Sokol Francis

In addition to the regulatory action, BrokerCheck discloses a history of customer disputes involving Sokol Francis:

• Arbitration Award for Misrepresentation (1990): A customer alleged misrepresentation involving real estate limited partnerships sold while she was affiliated with Waddell & Reed. An arbitration panel awarded the claimant $4,000. The customer had initially accepted a rescission offer—whereby the issuer repurchases an investor’s securities and refunds the purchase price plus interest—of $20,893.50 before the arbitration award .
• Variable Annuity Suitability Complaint (2019): A power of attorney for a client alleged that a variable annuity recommended by Sokol Francis was unsuitable due to the client’s age. The client sought to cancel the contract and recover approximately $11,458.58 in surrender charges. The complaint was denied.
• Mutual Fund Transfer Dispute (2005): A client alleged that only 50% of assets were transferred in accordance with a divorce decree when 100% had been requested. The complaint was closed with no action after it was determined that the transfer was handled in line with the court order.
• Unsuitability Complaint (2001): A client alleged that investment recommendations were unsuitable, seeking $7,000 in damages. The complaint was closed with no action.
• Stock Sale and Annuity Purchase (2000): A client complained that appreciated stock was sold and the proceeds used to purchase a variable annuity, resulting in an alleged loss of $27,028.43. This complaint also closed with no action.

Employment Termination

Sokol Francis was discharged from LPL Financial on May 23, 2024. The termination stemmed directly from the conduct that triggered the FINRA investigation: exercising discretion in customer accounts without the required written authorization.

What This Means for Investors

FINRA’s permanent bar from the industry and the record of customer complaints raise important questions for former clients of Linda Lucille Sokol Francis. Investors who worked with her during her time at Waddell & Reed or LPL Financial and who experienced losses may have viable claims for recovery.

Unauthorized discretion, even if not done with fraudulent intent, can lead to investment decisions that are misaligned with a customer’s goals, risk tolerance, or best interests. If you suspect your investments were handled improperly or if you experienced losses while under Sokol Francis’ advisement, it may be worthwhile to have your accounts reviewed by a securities attorney.

If Linda Lucille Sokol Francis’ Practices Caused Financial Loss for You Our Lawyers Can Help

The securities attorneys at Levin Papantonio have experience in representing investors harmed by broker misconduct. If you were a client of Linda Lucille Sokol Francis and believe you may have suffered financial losses, contact us for a free, confidential case evaluation.

We can help determine whether you may be entitled to recover your losses through FINRA arbitration or other legal means.

SOURCES:

• FINRA Rules
• FINRA BrokerCheck