Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Kevin Kimball Meadows (CRD # 2878889) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The suspension occurred during the course of an investigation into excessive and unsuitable trading, also known as churning. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Meadows.
Registration Background for Kevin Kimball Meadows
Mr. Meadows first became registered in the securities industry in 1997 and was most recently registered with Liverpool, NY based IBN Financial Services, Inc. (CRD # 42360) from May 2018 to February 2020. His prior registrations include Lombard Securities Incorporated (CRD# 27954) from January 2018 to February 2018 and Cape Securities Inc. (CRD # 7072) from June 2013 to December 2017.
FINRA’s Finding and Conclusions
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated January 28, 2020, Mr. Meadows consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between January 2016 and December 2017 (the “Relevant Period”), Meadows excessively and unsuitably traded three accounts of a senior customer (“Customer A”), which resulted in a loss of approximately $39,671”;
- “During the Relevant Period, Account #1 of Customer A had a turnover rate as high as 10.10 and a cost-to-equity ratio as high as 53 percent. The commissions, fees, and ticket charges in Account #1 totaled $38,621, resulting in an overall account loss of $28,140”;
- “During the Relevant Period, Account #2 had a turnover rate as high as 7.93 and a cost-to equity ratio as high as 44 percent. The commissions, fees, and ticket charges totaled $12,767, resulting in an overall account loss of $5,454”;
- “During the Relevant Period, Account #3 had a turnover rate as high as 6.93 and a cost-to equity as high as 37 percent. The commissions, fees, and ticket charges totaled $10,876, resulting in an overall account loss of $6,077”;
- “Meadows controlled the trading in these three accounts by recommending almost all of the trades”;
- “Meadows’ trading in the three accounts of Customer A was excessive and unsuitable given Customer A’s financial circumstances and investment objectives and resulted in losses of approximately $39,671” and
- By virtue of the foregoing, Meadows violated FINRA Rule 2111 regarding suitability and FINRA Rule 2010, which requires associated persons, in the conduct of business, to “observe high standards of commercial honor and just and equitable principles of trade.”
FINRA Sanctions Kevin Kimball Meadows
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s January 28, 2020 AWC also indicates that Mr. Meadows consented to the following sanction(s):
- A suspension from associating with any FINRA member in any capacity for three months.
Kevin Kimball Meadows has a History of Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Meadows reveals he has a history of customer complaints and/or arbitrations including but not necessarily limited to the following:
- On March 29, 2006 a customer initiated complaint was filed alleging unauthorized trading and use of margin. The customer alleged damages in the amount of 135,481.71. On January 7, 2008 the customer filed for mediation based on the complaint. The Complaint alleged damages in the amount of $1,209.31. The mediation was eventually settled on April 23, 2008 in the amount of $50,000.00; and
- On January 8, 1999 a customer initiated complaint was filed alleging breach of fiduciary responsibility. The complaint alleged damages in the amount of $6,589.00. On august 25, 1999 the complaint was settled in the amount of $7,826.57.
If you or someone you know has or had a brokerage account with Mr. Kevin Kimball Meadows 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.