FINRA Suspends Former LPL Financial Broker Barry L. Buchholz for Unauthorized Trades Totaling $590,795 in Inheritance Accounts of Four Customers

If you are a current or former client of Barry L. Buchholz and your account was funded with inheritance proceeds in 2023, you should know that according to FINRA’s findings, Buchholz placed 11 unauthorized transactions totaling more than $590,000 in the accounts of four customers — the adult daughters of a deceased elderly client — and that FINRA has suspended Buchholz for one month, from December 1, 2025, through December 31, 2025.

Barry L. Buchholz (CRD# 1583582), a former Investment Company and Variable Contracts Products Representative with LPL Financial, LLC in Cedar Rapids, Iowa, is no longer registered or associated with any FINRA member.

What FINRA Found

Without admitting or denying the findings, Buchholz consented to sanctions and to the entry of findings that he effected 11 unauthorized transactions totaling more than $590,000 in the accounts of four customers, the adult daughters of a deceased senior customer, in violation of FINRA Rule 2010.

According to the AWC, in 2023, Buchholz met with a longtime customer — an 83-year-old widower — and his four adult children to discuss estate planning. After their father passed away in May 2023, the four daughters each opened a non-discretionary brokerage account at LPL, and Buchholz became the registered representative assigned to all four accounts.

According to the AWC, between September 21 and September 28, 2023 — once the accounts were funded with the proceeds from the father’s estate — Buchholz placed 10 trades to purchase $590,795 in mutual fund shares across the four accounts, generating $16,245.63 in commissions. According to the AWC, Buchholz did not seek or obtain written or oral authorization from the customers to place these trades.

According to the AWC, the customers learned of these trades in October 2023 when they received their September 2023 account statements. On October 27, 2023, one of the daughters directed Buchholz to sell her mutual fund shares, which he did two business days later. On October 30, 2023, Buchholz sold all the shares in a second daughter’s account — also without obtaining her written or oral authorization. According to the AWC, these liquidations resulted in realized losses for both customers. The two remaining daughters did not liquidate their shares and ultimately saw positive returns; Buchholz earned $7,480 in commissions from the trades in their accounts.

Customer Complaint Record

According to BrokerCheck, a written customer complaint was received on November 6, 2023, alleging that Buchholz engaged in unauthorized trading in a mutual fund account. According to BrokerCheck, the complaint was settled on August 27, 2024, for $10,683.51; Buchholz’s individual contribution to the settlement was $10,683.51.

According to BrokerCheck, a second written customer complaint was received on November 2, 2023, also alleging unauthorized trading in a mutual fund account. According to BrokerCheck, that complaint was settled on August 7, 2024, for $9,893.52; Buchholz’s individual contribution to that settlement was $9,893.52.

A settlement isn’t an admission of wrongdoing. FINRA is clear on that, and so are we. Firms and brokers settle disputes for all kinds of reasons: litigation costs, customer relationships, business optics. We’re not saying the settlements prove anything. What we are saying is that the record exists, it’s public, and if you had a similar experience with Barry L. Buchholz, you deserve to know about it.

What Unauthorized Trading Means for Investors

Non-discretionary brokerage accounts require the customer’s authorization — written or oral — before a broker can execute any trade. When a broker places trades in a non-discretionary account without obtaining that authorization, it constitutes unauthorized trading regardless of whether the trades ultimately prove profitable.

FINRA Rule 2010 requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade.” Unauthorized trading — executing transactions in a customer’s non-discretionary account without first obtaining the customer’s authorization — violates this rule.

The obligation to obtain authorization applies even when a broker believes the investment is appropriate. The account holder has the right to decide what is done with their funds, and executing trades without that decision is a taking of that right — regardless of intent or outcome.

Red Flags to Watch For

If your brokerage account was opened with inheritance or estate proceeds and you experienced any of the following, the situation may warrant a closer look: account statements showing mutual fund purchases you did not authorize or discuss with your broker; trades placed in your account shortly after the account was funded without a prior conversation; commissions or fees on transactions you were not informed about in advance; a broker selling positions in your account without your explicit direction; or discovering trades only after receiving account statements rather than from a call or meeting with your broker. If any of these patterns apply to your account, a consultation with a securities law attorney can help you evaluate whether you have a potential claim.

Sanctions

According to BrokerCheck, Buchholz was suspended from association with any FINRA member in all capacities for one month, with the suspension in effect from December 1, 2025, through December 31, 2025. According to BrokerCheck, Buchholz is ordered to pay disgorgement of $7,480, plus interest. According to BrokerCheck, Buchholz is also fined $7,500. The fine and disgorgement are deferred, payable upon reassociation with a member firm or prior to any application for relief from any statutory disqualification, whichever is earlier.

Steps to Take Right Now

1. Gather your account statements, trade confirmations, and any correspondence with your broker or firm, including emails, texts, and written materials about the investments.
2. Look up your broker on FINRA BrokerCheck at brokercheck.finra.org to review their full disclosure record.
3. Contact a securities arbitration attorney for a consultation to evaluate your options.

Rosenberger + Kawabata represents retail investors in FINRA arbitration proceedings involving unauthorized trading and unsuitable investment recommendations. If you invested with Barry L. Buchholz at LPL Financial and experienced similar conduct, contact Rosenberger + Kawabata online for a free and confidential consultation, or call (310) 894-6921.

The information in this post comes from FINRA’s public records and BrokerCheck database. You can view the full detailed report (CRD# 1583582) here.

You can view the full January 2026 FINRA disciplinary actions report here.