KEVIN M MCCALLUM formerly of LPL

KEVIN MARSHALL MCCALLUM (KEVIN M MCCALLUM) was previously registered both as a broker and as an investment advisor. The last firm he was with was LPL FINANCIAL LLC in Birmingham, Alabama, from 05/24/2012 - 07/05/2019.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, KEVIN M MCCALLUM was in the securities industry for 26 years and was listed with 4 firms.  McCallum has 13 disclosures on his FINRA CRD report.  There are “Regulatory” disclosures and 10 "Customer Disputes.” The significance of McCallum’s "Customer Dispute" disclosures is underscored in FINRA NOTICE to MEMBERS 03-49. FINRA conducted a review of the CRD’s of all registered representatives, only .41% had been the subject of 3 or more customer complaints. In other words, KEVIN M MCCALLUM’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints. 

There was a “Regulatory” disclosure filed against KEVIN M MCCALLUM on 6/17/2021.  The FINRA report said in part that without admitting or denying FINRA’ s findings, KEVIN M MCCALLUM consented to the sanctions and to the entry of findings that he allegedly made unsuitable recommendations to 12 customers, resulting in their overconcentration in a high-risk, publicly-traded business development company (BDC).

FINRA’s findings stated in part that the BDC that KEVIN M MCCALLUM recommended allegedly held first and second lien secured loans, unsecured loans, and equity in small and medium-sized companies in a variety of industries, including construction, banking, telecommunications, pharmaceutical, and oil and gas companies. The risk of loss for investments in this BDC was magnified because it borrowed money. FINRA adds that the illiquidity of the BDC's investments presented risk that it would be difficult for the BDC to sell such investments if required, causing it to realize significantly less than the value at which the BDC recorded the investments. KEVIN M MCCALLUM's recommendations allegedly resulted in the 12 customers concentrating as much as approximately 17% to over 60% in their liquid net worth the BDC. Four of the customers were over the age of 60 and seven of the customers invested retirement funds in the BDC. McCallum's alleged recommendations generated commissions to his member firm, $14,231.61 of which was paid to McCallum. Four customers sold their positions and realized losses totaling $1,222,092.29. KEVIN M MCCALLUM received a one year suspension, was fined $25,000.00, disgorgement amount $14,231.61, and restitution of $1,222,092.29.

All of the 10 “Customer Disputes” filed against KEVIN M MCCALLUM have settled. Some of the settlement amounts were: $1,059,769.00, $1,900,000.00, and $2,500,000.00.  A few of the allegations were in part, “Customer alleges that between October 2018 and December 2018 representative made unsuitable investment recommendations and concentrated claimants' accounts in Medley Capital Corporation,” and “Customer alleges that between May 2017 and May 2020, representative used his discretion to make concentrated investments in customer's account in a publicly traded BDC that was inappropriate for the customer's investment objectives.”

To discuss this article or any other securities issues, contact Soreide Law Group and speak to an experienced securities lawyer at no cost at:  888-760-6552.

Soreide Law Group represents clients nationwide before FINRA on a contingency fee basis, no fee to you if no recovery,