A maligned Scottsdale financial advisor apparently shot his ex-wife to death and killed himself at a north Scottsdale park last week.
Scottsdale Police Department responded to reports of a shooting involving one male and one female at Cholla Park just before 2 p.m. The department later confirmed the identities of the victim and suspect as Tammy Welch and Lawrence Labine.
Welch was pronounced dead at the scene, according to the department. Labine was transported to an area hospital where he later died.
Scottsdale Police have called the incident a murder-suicide, stating Labine shot Welch and then himself.
“It is believed that Labine, armed with two handguns, shot Welch as she sat in her vehicle and then turned one of the guns in himself,” according to a statement from the department.
Labine, a Scottsdale financial advisor, had a history of allegedly shady dealings, according to court proceedings and records with FINRA, the Financial Industry Regulatory Authority.
In January the Progress reported that Labine was the subject of a FINRA lawsuit alleging violations of common law fraud, breach of fiduciary duty, negligence and negligent supervision
Overall, Labine had 25 consumer complaints filed against him since 1998, according to Broker Check, a service provided by FINRA.
D. Daxton White, managing partner with The White Law Group, represented a Glendale resident in a FINRA suit against White, alleging Labine made four high-risk investments on behalf of the client, who was not adequately informed of the risk.
The alleged victim was seeking between $100,000 and $200,000 in damages in the suit.
In addition to the 25 customer complaints, Labine was the subject of 6 regulatory actions by FINRA and 4 financial judgments, according to Broker Check.
The majority of Labine’s clients were elderly, according to SEC records.
Labine was also previously fired from DeWaay Financial in 2010 as “the result of allegations of violations of industry standards and regulations, as well as fraud,” according to the SEC.
DeWaay’s owner ultimately paid $100,000 in a settlement with a client over allegations of misconduct against Labine.
In 2017, FINRA barred Labine from acting as a broker or working with a broker-dealer firm as the result of a regulatory action initiated by the Arizona Corporation Commission’s Securities Division.
The investments at the heart of the current FINRA lawsuit occurred before FINRA barred Labine, White said.
The SEC also barred Labine from working as a broker or investment advisor, according to Broker Check.
In 2016, the SEC brought proceedings against Labine for investments he sold to clients in debt securities issued by Domin-8 Enterprise Solutions, Inc., a tech startup formerly in a dire financial situation and ultimately went bankrupt.
Court filings in a 2011 lawsuit brought by Domin-8 investors in U.S. District Court show Domin-8 eventually became profitable after years of losses but remained at risk of shutting down because it took on too much debt.
The investors alleged Domin-8 leadership approached Labine and DeWaay about acquiring the company after it filed for bankruptcy, leaving existing leadership, DeWaay and Labine to reap the benefits of the company’s newfound profitability while investors would be on the outside looking in.
The two sides settled the suit in 2014.
SEC investigators alleged Labine “misrepresented” the high-risk nature of the investments.
Chief Administrative Law Judge Brenda P. Murray ordered Labine to pay $100,000 to the SEC and barred him from working in the investment industry for two years.