Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/investment adviser Charles Kenahan (CRD # 1351974) was recently barred from the securities industry by FINRA’s Department of Enforcement. The sanction occurred after he failed to provide information to FINRA in an investigation into unsuitable excessive trading (“churning”) in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Kenahan.
Registration Background for Charles Kenahan
Mr. Kenahan first became registered in the securities industry in 1985. He was most recently registered with Boston, MA based Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD # 7691) from December 2007 to July 2019. His prior registrations include Morgan Stanley & Co., Incorporated (CRD # 8209) from April 2007 to December 2007 and Morgan Stanley DW Inc. (CRD # 7556) from June 1994 to April 2007.
Charles Kenahan Has a History of Customer Complaints
FINRA BrokerCheck for Mr. Kenahan reveals he has a history of customer complaints and/or customer initiated arbitrations including but not necessarily limited to:
- On February 28, 2019 a customer initiated arbitration filed with FINRA was received by Merrill Lynch, Pierce, Fenner & Smith, Incorporated, naming Mr. Kenahan as a respondent for alleged actions that occurred while he was associated with the firm. The customer(s) alleged that between December 2007 and February 2018 Mr. Kenahan made unsuitable securities recommendations and engaged in unauthorized and excessive trading. The customer(s) further alleged damages in the amount of $42,218,702.00. On December 1, 2020, the arbitration was settled in the amount of $24,250,000.00.
- On May 1, 2018 a customer initiated arbitration was filed with FINRA naming Mr. Kenahan as a respondent for alleged actions that occurred while he was associated with Merrill Lynch, Pierce, Fenner & Smith, Incorporated. The customer(s) alleged that between 2012 and 2017 Mr. Kenahan made unsuitable securities recommendations and engaged in excessive trading. The customer(s) further alleged damages in the amount of $700,000.00. On October 30, 2019, the arbitration was settled in the amount of $350,000.00.
- On March 12, 2018 a customer initiated arbitration was filed with FINRA naming Mr. Kenahan as a respondent for alleged actions that occurred while he was associated with Merrill Lynch, Pierce, Fenner & Smith, Incorporated. The customer(s) alleged that between February 2012 and December 2017 Mr. Kenahan made unsuitable investment recommendations, engaged in excessive trading and misrepresentation of securities. On June 11, 2019, the arbitration was settled in the amount of $40,000,000.00.
FINRA’s Allegations Against Charles Kenahan
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated January 22, 2021, Mr. Kenahan consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “On July 11, 2019, Merrill Lynch filed a Form U5 terminating [Mr. Kenahan’s] registration due to “[l]oss of trust and confidence related to the servicing of client accounts””;
- “FINRA began investigating this matter after receiving a statement of claim in 2018 from one set of [Mr.] Kenahan’s customers alleging sales practice violations”;
- “Although [Mr.] Kenahan initially cooperated in FINRA’s investigation, he ceased doing so in January 2021”;
- “On December 15, 2020, pursuant to FINRA Rule 8210, FINRA sent two requests to [Mr.] Kenahan, one seeking the production of information and documents and a second seeking the continuation of his testimony”;
- “As stated during his counsel’s phone call with FINRA on January 8, 2021, and by this agreement, [Mr.] Kenahan acknowledges that he received FINRA’s requests and will not produce the information and documents requested or appear for on-the-record testimony at any time”; and
- By virtue of the above actions, Mr. Kenahan violated FINRA Rule 8210, regarding providing information requested by FINRA in an investigation; and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Sanctions Charles Kenahan
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s January 22, 2021 AWC also indicates that Mr. Kenahan consented to the following sanction(s):
- A bar from associating with any FINRA member in all capacities.
If you or someone you know has or had a brokerage account with Charles Kenahan and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.