KEVIN MARSHALL MCCALLUM Fined and Suspended

According to FINRA’s website, KEVIN MARSHALL MCCALLUM (KEVIN MCCALLUM) CRD#: 2222586, formerly with LPL Financial LLC of Birmingham, Alabama, submitted a Letter of Acceptance, Waiver, and Consent (AWC) in June of 2021, for the purpose of proposing a settlement of the alleged rule violations and consented to the following sanctions:

• A one-year suspension from associating with any FINRA member in all capacities. (6/21/2021 - 6/20/2022)
• A $25,000 fine
• Disgorgement of $14,231.61 plus interest
• Restitution of $1,222,092.29 plus interest

Without admitting or denying FINRA’s findings, KEVIN MARSHALL MCCALLUM consented to the sanctions and to the entry of findings that he allegedly made unsuitable recommendations to 12 clients, resulting in their over-concentration in a high-risk, publicly-traded business development company (BDC).
FINRA’s findings stated that the BDC that KEVIN MARSHALL MCCALLUM allegedly recommended to his clients held first and second lien secured loans, unsecured loans, and equity in small and medium-sized companies in different industries, including construction, banking, telecommunications, pharmaceutical, and oil and gas companies. According to FINRA, the risk of loss for investments in this BDC was increased because it borrowed money. Additionally, the illiquidity of the BDC's investments presented a risk that it would be difficult for the BDC to sell such investments if required. This could significantly lessen the value at which the BDC recorded the investments. Also, the BDC was exposed to interest rate risks that could also affect its investment returns.
According to FINRA, KEVIN MARSHALL MCCALLUM’s recommendations allegedly resulted in the 12 clients concentrating as much as 17% to over 60% in their liquid net worth the BDC. Four of the clients were over the age of 60 and seven of the clients invested retirement funds in the BDC.
FINRA reported that KEVIN MARSHALL MCCALLUM's recommendations generated commissions to his member firm, of which $14,231.61 was paid to McCallum. Four clients sold their positions and with losses totaling $1,222,092.29.
FINRA’s findings also stated that KEVIN MARSHALL MCCALLUM sent emails to clients about the BDC that contained alleged unwarranted and exaggerated claims, opinions and forecasts, did not provide a fair and balanced treatment of the risks and benefits of the investment, and contained promissory statements.
Kevin McCallum, according to FINRA, allegedly made statements that were promissory and unwarranted by stating that the stock price of the BDC would increase 80% to 90% of the net asset value, stating that he did not anticipate further downside in the client's portfolio, stating that he was confident that the portfolio would rise back to previous levels and higher, and predicting that the Federal Reserve would raise interest rates three times in the year, which would benefit the BDC.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, KEVIN MARSHALL MCCALLUM, has been in the securities industry for 26 years and has 6 Disclosures on his FINRA CRD report. Of the 6 Disclosures, 5 are “Customer Disputes.” There is a pending Customer Dispute dated December 8, 2020, requesting damages of $4,800,000.00.  The allegations are, “4.Customers allege that between October 2017 through December 2018 representative made discretionary investments and concentrated their accounts in a non-diversified, closed end management company that was not consistent with their investment objectives.”
If you’ve experienced losses due to the actions or recommendations of KEVIN MARSHALL MCCALLUM formerly of LPL Financial LLC of Birmingham, Alabama, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group works on a contingency fee basis, no fee to you if no recovery, and we represent our clients nationwide before FINRA.
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