Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Leonard Charles Kinsman (CRD # 2816535) was recently barred from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of his refusal to cooperate with FINRA in an investigation regarding possible sales practice violations and his termination for “unprofessional conduct.” The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Kinsman.
Registration Background for Leonard Charles Kinsman
Mr. Kinsman first became registered in the securities industry in 1997 and was most recently registered with Staten Island, NY based Wells Fargo Advisors Financial Network, LLC (CRD # 11025) from June 2014 to July 2019. His prior registrations include Merrill Lynch, Pierce Fenner & Smith Incorporated (CRD# 7691) from October 2011 to June 2014 and Wells Fargo Advisors, LLC (CRD# 19616) from June 2008 to October 2011.
FINRA’s Allegations against Leonard Charles Kinsman
FINRA’s investigation led to Mr. Kinsman entering into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA on May 20, 2020. According to the AWC, Mr. Kinsman consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “On July 4, 2019, the Firm filed a Uniform Termination Notice for Securities Industry Registration (“Form U5”), stating that the Firm had discharged [Mr.] Kinsman for “unprofessional conduct””;
- “On April 23, 2020, in connection with a FINRA investigation into the events resulting in [Mr.] Kinsman’s termination from the Firm and sales practice complaints, FINRA staff sent a request to [Mr.] Kinsman for on-the-record testimony pursuant to FINRA Rule 8210”;
- “As stated during his counsel’s phone call with FINRA staff on April 23, 2020, and by this agreement, [Mr.] Kinsman acknowledges that he received FINRA’s request and will not appear for on-the-record testimony at any time”; and
- “By refusing to appear for on-the-record testimony as requested pursuant to FINRA Rule 8210, [Mr.] Kinsman has violated FINRA Rules 8210 and 2010.”
FINRA Sanctions Leonard Charles Kinsman
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s May 20, 2020 AWC also indicates that Mr. Kinsman consented to the following sanction:
- A bar from associating with any FINRA member firm in any capacity.
Leonard Charles Kinsman has a History of Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Kinsman reveals he has a history of customer complaints including but not necessarily limited to the following:
- On April 9, 2019 a customer initiated an arbitration against Mr. Kinsman alleging unsuitable investment recommendations, forgery and falsifying business records. The alleged actions were said to have occurred while Mr. Kinsman was registered with Wells Fargo Advisors Financial Network LLC. The customer alleged damages in the amount of no less than $591,866.69. The arbitration was settled on May 9, 2020 in the amount of $995,000.00.
- On October 17, 2016 a customer initiated a written complaint against Mr. Kinsman alleging that while he was registered with Wells Fargo Advisors Financial Network LLC, Mr. Kinsman told them “their investment was principal protected [and] would be guaranteed an annual return of at least 5%, and had no fees associated with it”. The customer did not allege a specific amount in monetary damages. However, the complaint was settled on February 22, 2017 in the amount of $24,000.00.
- On March 27, 2008 a customer initiated an oral complaint against Mr. Kinsman for actions regarding an investment in auction rate securities that allegedly occurred while he was registered with Citigroup Global Markets Inc. The customer did not allege a specific amount in monetary damages. However, the complaint was settled on December 13, 2008 in the amount of $200,626.00.
- On April 13, 1998 a customer initiated an arbitration against Mr. Kinsman alleging suitability, misrepresentation, churning and omission of facts in relation to the purchase/sale of securities while he was registered with Royal Hutton Securities Corp. The customer alleged damages in the amount of $180,000.00. The arbitration was ultimately settled through mediation on October 21, 1998 in the amount of $180,000.00.
If you or someone you know has or had a brokerage account with Mr. Leonard Charles Kinsman 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.