Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker, Kimberly Schkade-Hill (CRD # 4550820) was recently suspended from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into fraud regarding client documents. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Ms. Schkade-Hill.
Registration Background for Kimberly Schkade-Hill
Ms. Schkade-Hill first became registered in the securities industry in 2002 and was most recently associated with Austin, TX based Lion Street Financial, LLC. (CRD # 165828) from May 2018 to May 2019. Her prior registrations include SagePoint Financial, Inc. (CRD # 133763) from January 2018 to May 2018 and BBVA Securities, Inc. (CRD # 27060) from May 2013 to January 2018.
FINRA’s Allegations against Kimberly Schkade-Hill
FINRA’s investigation led to Ms. Schkade-Hill entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on September 3, 2020. According to the AWC, Ms. Schkade-Hill consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “While associated with LSF, [Ms.] Hill caused at least 49 different customers to sign at least 79 blank or incomplete account forms intended to process account openings and transfers, which were later filled in by an LSF registered sales assistant”;
- “In May 2018, [Ms.] Hill associated with LSF and, upon her association, LSF began transitioning her customers’ accounts from her prior firm to LSF”;
- “In order to facilitate these account transfers, [Ms.] Hill met with clients to obtain relevant information, but rather than filling in that information on account forms, [Ms.] Hill recorded information for each client on one or more customer profile documents”;
- “During these client meetings, [Ms.] Hill asked her clients to sign blank account forms, which she would sign while blank as well”;
- “[Ms.] Hill’s practice of asking her customers to sign blank forms violated FINRA Rule 2010 and caused LSF to maintain inaccurate books and records in violation of FINRA Rules 4511 and 2010”;
- “Separately, from May 2018 through December 2018, [Ms.] Hill mismarked order tickets as unsolicited when the trades were, in fact, solicited”;
- “Specifically, in instances where a customer sought to invest new or additional funds, [Ms.] Hill would mark orders as unsolicited if she recommended that the customer invest those new or additional funds into securities that they already held in their accounts”;
- “As a result, [Ms.] Hill marked at least 100 order tickets unsolicited. [Ms.] Hill’s actions violated FINRA Rule 2010”; and
- “By mismarking the transactions, [Ms.] Hill also caused LSF to make and maintain inaccurate books and records in violation of FINRA Rules 4511 and 2010.”
FINRA Sanctions Kimberly Schkade-Hill
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s September 3, 2020 AWC also indicates that Ms. Schkade-Hill consented to the following sanction(s):
- A fine in the amount of $10,000.00;
- A suspension from association with any FINRA member firm in any capacity for a four month period; and
- Attending and completing 10 hours of continuing education on the topics of compliance obligations and recordkeeping prior to re-association with a member firm.
Kimberly Schkade-Hill Has a History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Ms. Schkade-Hill reveals that she has a history of customer complaint(s)/arbitration(s) that include, but are not necessarily limited to the following:
- On August 13, 2015, a customer initiated a written complaints against Ms. Schkade-Hill for actions that allegedly occurred while she was associated with BBVA Securities, Inc. The customer alleged Ms. Schkade-Hill engaged in fraud and misrepresentation by providing misleading and incomplete information regarding the terms and features of a fixed index annuity. The customer further alleged Ms. Schkade-Hill’s actions resulted in damages in the amount of $9,600.00. On October 1, 2015, the complaint was denied.
If you or someone you know has or had a brokerage account with Ms. Kimberly Schkade-Hill 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.