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

I cannot thank you enough for your guidance. It's a good feeling knowing someone is fighting for you.

Matt J.

LATEST NEWS AND ARTICLES

January 20, 2026
SEC Charges Three Advisors in Alleged Sale of Unregistered Oil and Gas Securities

The Securities and Exchange Commission (SEC) has charged three advisors and agents with selling millions of dollars in unregistered oil and gas securities to retail investors while failing to disclose conflicts of interest.

January 19, 2026
FINRA Study Warns of Declining Investor Participation and Rising Fraud Risks Among Younger Investors

A new study from FINRA’s Investor Education Foundation highlights troubling shifts in retail investing, including shrinking participation, heavier reliance on social media for advice, and growing vulnerability to fraud.

January 16, 2026
SEC Signals Sweeping IPO Rule Changes to Ease Path for Smaller Companies

The Securities and Exchange Commission (SEC) plans to overhaul its public offering framework to make it easier for smaller companies to access the public markets, according to remarks SEC Chairman Paul Atkins delivered at the New York Stock Exchange, as reported by Bloomberg Law.