FINRA Bars Lenny Kinsman For Failing To Testify, Produce Information

Investor Alert! The Financial Industry Regulatory Authority (“FINRA”) barred Leonard “Lenny” Kinsman (CRD#: 2816535, Staten Island, New York) from being a securities broker for violating FINRA rules. In addition, Kinsman’s clients brought investment disputes which raise questions about whether Kinsman may have misrepresented information to them and sold unreasonable investments. Here’s what we know so far.

Lenny Kinsman Faces Serious FINRA Sanction For Refusing To Speak With FINRA Staff

Lenny Kinsman potentially followed the path of many before him by refusing to cooperate with FINRA staff in an investigation. Notably, FINRA Rule 8210 requires that securities brokers comply with FINRA when it asks for them to testify or to provide it information. Apparently, Kinsman did not want to talk about what he did at his past employers. Evidently, he worked at Wells Fargo from 2014 to 2019, following his 2011-2014 employment with Merrill Lynch. Critically, FINRA investigated sales practice complaints. Kinsman violated FINRA Rule 8210 by not complying. His bar is effective May 2020.

Wells Fargo Client’s Lawsuit Indicates That Kinsman Gave Shoddy Advice, Forged Client’s Signature

Apparently, a client of Wells Fargo brought a FINRA Arbitration Action in April 2019. Apparently, Lenny Kinsman was the client’s financial advisor from 2012 to 2017. At some point during his employment, Kinsman supposedly made unsuitable recommendations to the client. It seems that Kinsman might not have considered the client’s investment objectives, risk tolerance or other suitability issues. Moreover, he allegedly forged the client’s signature and purportedly falsified business records. It appears that Wells Fargo settled this complaint for $995,000.

Wells Fargo Client Indicates That Lenny Kinsman’s Annuity Sale Was Misrepresented

Evidently, a Wells Fargo client complained about Kinsman in October 2016. It appears that Lenny Kinsman may have told the client that an investment had principal protection. It is possible that Kinsman told the client that they would not lose money by investing in the variable annuity. Not only that, but the client indicated that Kinsman guaranteed 5% annual returns with no fees. It seems that the client did not earn 5% returns. Apparently, Wells Fargo opted to settle this matter through paying the client $24,000.

Kinsman Supposedly Recommended Bad Investments

Evidently, in a May 2016 complaint, a client alleges that Lenny Kinsman misrepresented information in connection with his investment recommendations. It is possible that Kinsman may have misled the client by making false statements or representations. Not only that, but Kinsman could have overlooked that this client was not the right fit for the investments he sold. However, this complaint was withdrawn in 2016.

FINRA BrokerCheck indicates that Lenny Kinsman denies all allegations of misconduct.

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