On January 28, 2020, the Financial Industry Regulatory Authority (“FINRA”) suspended Kevin Meadows (CRD#: 2878889, Columbus Georgia). Namely, the securities broker, who worked at Cape Securities (2013 to 2017), Lombard Securities (2018) and IBN Financial Services (2018 – present), accepted sanctions from the financial watchdog via an Acceptance, Waiver and Consent (“AWC”) #: 2018057846301 to resolve allegations that he gave bad investment advice to an elderly and vulnerable client. Not only that, but FINRA shows that no less than 4 clients disputed Meadows’s sales practices. These disclosures suggest that Meadows made unsuitable and unauthorized trades which caused clients to experience losses. Here’s more:
Evidently, Kevin Meadows violated FINRA Rule 2111. Mainly, this rule compels brokers to have a reasonable basis when recommending a securities trade or strategy. Among other things, brokers have to review the client’s profile which includes things like the client’s age, goals and investment objectives. Not only that, but FINRA also requires securities brokers to consider whether a higher rate of trading is reasonable for clients based on things like the client’s circumstances and goals.
Notably, FINRA contended that Kevin Meadows excessively and unsuitably traded in a senior client’s account. That investor supposedly did not have an aggressive risk tolerance. Apparently, Meadows’s trading produced a high turnover rate and cost-to equity ratio for the client. In fact, a turnover rate of more than 5 can show excessive trading by FINRA’s standards. Supposedly, one of the client’s accounts had a turnover rate of 10. Also, that account had a 53% cost-to-equity ratio. Because of this, Meadows allegedly caused the client to experience nearly $40,000 in losses.
Evidently, a client of J.C. Bradford indicated in a dispute that Kevin Meadows breached a fiduciary duty, placing his interests ahead of the client’s interests. It appears that J.C. Bradford compensated the client to resolve that matter. Additionally, UBS clients suggested that Meadows made unauthorized and excessive trades. Apparently, one of those clients received compensation to resolve the allegations of Meadows’s unauthorized trading and unreasonable use of margin.
Experienced losses by investing with Kevin Meadows? If you have, contact Soreide Law Group at (888) 760-6552 and speak with experienced legal 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 brokers and brokerage firms.
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