Charles Ernest Kenahan of Boston Massachusetts a stockbroker formerly registered with Merrill Lynch Pierce Fenner Smith has been barred by New Hampshire Department of State Bureau of Securities Regulation founded on accusations of Kenahan making unsuitable investment recommendations to a customer of Merrill Lynch. Consent Order No. COM2019-000 (Dec. 7, 2020).
According to the Order, Kenahan did not have an adequate basis to conclude that a Merrill Lynch investor was suitable for leverage and inverse exchange traded funds. The Bureau noted that Kenahan’s trading was excessive and that trades had been mismarked by Kenahan to make it appear as though they were not solicited. The Bureau also referenced that Kenahan overcharged the customer on transactions.
Kenahan has been identified in five customer initiated investment related disputes pertaining to his alleged misconduct while registered with Merrill Lynch. Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Kenahan is referenced in a customer initiated investment related written complaint where the customer requested $148,353.00 in damages based upon accusations that misrepresentations had been made to the Merrill Lynch customer. The complaint alleges that stock recommendations were not suitable and had caused the customer to experience losses.
Another customer initiated investment related arbitration claim concerning Kenahan’s activities was resolved for $40,000,000.00 in damages on June 11, 2019 supported by allegations that misrepresentations had been made by the stockbroker and that trades were executed in the customer’s account on an excessive basis between February of 2012 and December of 2017 during the time that Kenahan was associated with Merrill Lynch. FINRA Arbitration No. 18-00974.
On October 30, 2019, an additional customer initiated investment related arbitration claim involving Kenahan’s conduct was settled for $350,000.00 in damages founded on accusations that investment recommendations had not been suitable for the customer. FINRA Arbitration No. 18-01691. Trades were allegedly made on an excessive basis in the customer’s Merrill Lynch investment account.
Another customer initiated investment related arbitration claim involving Kenahan’s activities was resolved for $24,250,000.00 in damages based upon allegations that excessive and unauthorized trades were effected in the customer’s account between December of 2007 and February of 2018. FINRA Arbitration No. 19-00466 (Dec. 1, 2020). The claim also alleges that stocks failed to be suitable for the customer.
Kenahan was discharged by Merrill Lynch on July 9, 2019 supported by accusations of Kenahan’s sales practice violations as alleged by Kenahan’s customers. The securities broker dealer noted that Kenahan allegedly made unauthorized, unsuitable and excessive trades in customer accounts.