Barred Advisor Continues Pattern of Settlements at Western International Securities

Posted on January 23rd, 2025 at 12:18 PM
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.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

October 14, 2025
Morgan Stanley's Termination of Financial Advisor Highlights Scrutiny Over U-5 Filings

Morgan Stanley recently terminated a 25-year industry veteran in Miami, underscoring the heightened scrutiny surrounding U-5 filings and the challenges that accompany them.

October 13, 2025
Morgan Stanley Cuts Advisor Deferrals in 2026 Compensation Plan, Boosting Advisor Payouts

Morgan Stanley Wealth Management announced a significant change to its 2026 compensation plan, cutting advisor deferral rates by half while keeping total pay and grid structures largely unchanged.

October 10, 2025
Former Two Sigma Quant Researcher Faces Fraud Charges Over Manipulated Models

Federal prosecutors and the Securities and Exchange Commission (SEC) have filed parallel actions against Jian Wu, a former quantitative researcher at Two Sigma Investments, alleging he secretly manipulated algorithmic trading models to boost his own compensation by millions of dollars.