Tr?id=566623520170033&ev=PageView&noscript=1

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
Quotes Bigger

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

1776963542 Law
April 23, 2026
Advisor Recruiting Surges in 2025 as Industry Movement Reaches New Highs

Advisor movement across the wealth management industry accelerated sharply in 2025, with 11,172 experienced financial advisors changing firms, according to reporting by Wealth Management citing the latest Advisor Transition Report from Diamond Consultants.

1776796402 Law
April 21, 2026
DOL Proposal on Alternative Assets in 401(k)s Faces Cautious Reception

The U.S.

1776708210 Law
April 20, 2026
FINRA Suspends Former Cape Securities CCO for Supervision Failures Tied to GWG L Bonds and Complex ETPs

The Financial Industry Regulatory Authority (FINRA) recently suspended and fined Lester Joel Hochler, the former Chief Compliance Officer of Cape Securities Inc., for failing to reasonably supervise recommendations of speculative debt securities and complex exchange-traded products to retail customers.