Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Christopher Booth Kennedy (CRD # 4498061) was recently barred from the securities industry by FINRA’s Department of Enforcement after an investigation into excessive trading (i.e., churning).
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Kennedy.
Registration Background for Christopher Booth Kennedy
Mr. Kennedy first became registered in the securities industry in 2002. He was most recently registered with Woodland Hills, CA based Western International Securities, Inc. (CRD # 39262) from December 2019 to September 2021. His prior registrations include Spartan Capital Securities, LLC (CRD # 146251) from July 2019 to September 2019, and Western International Securities, Inc. (CRD # 39262) from August 2017 to July 2019.
FINRA’s Allegations Against Christopher Booth Kennedy
According to a November 17, 2023 Order Accepting Offer of Settlement in Disciplinary Proceeding No. 2021072389001 from FINRA’s Office of Hearing Officers, Mr. Kennedy consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between July 2020 and July 2021, Respondent Christopher Kennedy churned and excessively traded four accounts of six customers (Customers 1–6) as a registered representative of FINRA member Western International Securities”;
- “[Mr.] Kennedy used his control over these accounts to direct an excessive series of transactions in each account that generated commissions for his own benefit at the customers’ expense”;
- “In all, between July 2020 and July 2021, [Mr.] Kennedy directed over 5,300 trades representing net trading of more than $350 million in the four accounts of Customers 1–6.
- Each month, [Mr.] Kennedy made an average of 102 trades per account representing net trading of more than $6.9 million per account or approximately 13 times the average account value”;
- “As the result of [Mr.] Kennedy’s excessive trading, Customers 1–6 collectively lost over $2.3 million in value from their accounts and paid more than $715,000 in total trading costs and margin interest, including over $595,000 in commissions”;
- “Moreover, in March 2021, [Mr.] Kennedy began making fake account statements to hide the results of his trading from Customers 1 and 2, the husband and wife co-trustees of a family trust account”;
- “During FINRA’s investigation of his trading, [Mr.] Kennedy repeatedly lied to FINRA staff in response to the staff’s requests for information and testimony pursuant to FINRA Rule 8210”; and
- By virtue of his actions, Mr. Clark violated FINRA Rule 8210 regarding cooperating investigations and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
Christopher Booth Kennedy Barred from Securities Industry by FINRA
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s November 17, 2023 Order also indicates that Mr. Kennedy consented to the following sanction(s):
- barred from association with any FINRA member in all capacities.
Christopher Booth Kennedy Has A Prior History of Securities Industry Customer Complaints
In addition to Christopher Booth Kennedy being barred by FINRA from the securities industry regarding excessive trading (churning), FINRA BrokerCheck for Mr. Kennedy reveals that he has a history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On June 2, 2022 a customer-initiated arbitration was commenced against Mr. Kennedy regarding alleged actions that occurred while he was associated with Western International Securities, Inc. The customer’s allegations included misrepresentation, suitability of transactions, and breach of fiduciary duty. The customer further alleged damages in the amount of $120,694.00. On June 9, 2023 the arbitration was settled in the amount of $75,000.00.
- On May 10, 2022 a customer initiated a written complaint against Mr. Kennedy regarding alleged actions that occurred while he was associated with Western International Securities, Inc. The customer’s allegations included unauthorized trading. The customer did not allege a specific dollar amount regarding damages. On June 9, 2023, the complaint was settled in the amount of $375,000.00.
- On December 10, 2021 a customer initiated a written complaint against Mr. Kennedy regarding alleged actions that occurred while he was associated with Western International Securities, Inc. The customer’s allegations included breach of fiduciary duty, unauthorized trading, and breach of contract. The customer further alleged damages in the amount of $245,000.00. On March 2, 2022, the complaint was settled in the amount of $125,000.00.
Have You Lost Money with Christopher Booth Kennedy?
If you or someone you know has or had a brokerage account with Mr. Christopher Booth Kennedy 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.
