Merrill Lynch Broker Charles Kenahan Under Investigation For Bad Trades

Soreide Law Group is investigating claims on behalf of investors who purchased securities from Charles Ernest Kenahan (CRD#: 1351974, Boston, Massachusetts). Not only is the securities broker under investigation by New Hampshire Department of State Bureau of Securities Regulation, but at least four investors brought disputes about the Merrill Lynch broker’s sales practices. These investor disputes suggest that Kenahan sold bad investments and had caused investor losses.

New Hampshire Investigating Charles Kenahan’s Trading Practices

Evidently, the New Hampshire Department of State Bureau of Securities Regulation started investigating Charles Kenahan on June 5, 2020. Apparently, the focus of the Bureau’s investigation is Kenahan’s trading practices. It seems that the Bureau is in the process of determining if Kenahan’s trading was unsuitable, excessive or unauthorized. Notably, in July 2019, Merrill Lynch disaffiliated with Kenahan for these alleged sales practice violations. The securities firm noted that clients took issue with Kenahan not only making unauthorized trades but also trading excessively and giving them bad advice.

Merrill Lynch Client Indicates That Kenahan Excessively Traded

Notably, on May 1, 2018, a client of Merrill Lynch brought a FINRA Arbitration Claim #: 18-01691. Apparently, Charles Kenahan’s trading of listed equities was excessive from 2012 to 2017. It also seems that he gave the client unreasonable advice. It seems that Kenahan overlooked the client’s risk tolerance, objectives and needs for a long time. For this reason, Merrill Lynch opted to pay the client $350,000 to settle this investor’s dispute on October 30, 2019.

Charles Kenahan Allegedly Gives Bad Advice

Evidently, a Merrill Lynch client took issue with Charles Kenahan on March 13, 2018 in FINRA Arbitration #: 18-00974. Namely, the client suggested that Kenahan made unsuitable investment recommendations. It appears that Kenahan should not have told the client to invest in equities including penny stocks. Also, the client suggested that Kenahan misrepresented information in connection with the aggressive investments that he sold. Finally, the client pointed out that Kenahan’s trading was unreasonable and excessive. Because of this, Merrill Lynch opted to settle this matter though making a payment of $40,000,000 to the client on or around June 11, 2019.

Merrill Lynch Client Indicates Losses Attributed To Kenahan’s Unauthorized Trading

Apparently, a Merrill Lynch client filed FINRA Arbitration Action #: 19-00466 on February 2, 2018. As with the other claims, this client suggested that Charles Kenahan’s trading caused the client’s losses from 2007 to 2018. It sems that Kenahan traded stocks without the client’s knowledge and without any authorization. Not only that, but Kenahan supposedly engaged in excessive trading. Supposedly, Kenahan invested the client in stocks which were not consistent with the client’s investment profile. For this reason, the client seeks $42,218,702 in compensation from Kenahan. As of July 15, 2020, this lawsuit involving Kenahan is ongoing.

Did Kenahan Sell You Unsuitable Investments?

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Have you experienced losses by investing with broker Charles Kenahan? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of securities brokers and financial advisors.