Barred Advisor Continues Pattern of Settlements at Western International Securities
From the desk of Jim Eccleston at Eccleston Law
Chris Kennedy, a barred advisor formerly associated with Western International Securities, has agreed to a $2.1 million settlement with the Securities and Exchange Commission (SEC) over allegations of high-volume trading, or churning, in client accounts. According to InvestmentNews, the settlement caps a year of increased regulatory scrutiny on former Western International Securities advisors following the firm’s acquisition by LPL Financial Holdings through its purchase of the Atria Wealth Solutions network of broker-dealers.
Between July 2020 and July 2021, Kennedy allegedly violated Regulation Best Interest by recommending a short-term, high-volume trading strategy to 19 retail brokerage accounts without a reasonable basis. According to InvestmentNews, the SEC’s complaint indicated this strategy resulted in over $363 million in transactions, leading to customer losses exceeding $9 million.
Kennedy’s case is not the only regulatory issue tied to Western International Securities this year. Over the summer, the firm faced approximately $1.7 million in regulatory penalties, including an SEC settlement over Regulation Best Interest violations. That case involved the sale of bonds issued by GWG Holdings, a company that filed for bankruptcy in April 2022. Another former Western International advisor was barred by FINRA earlier this year for misappropriating client funds over 17 years, as reported by InvestmentNews.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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