Donald George Padilla of Alhambra California a stockbroker formerly registered with Kestra Investment Services LLC has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that he failed to comply with an Arbitration Award or otherwise respond to a FINRA request concerning his compliance with that Award. FINRA Case No. 18-02166 (Jan. 22, 2020).
FINRA Public Disclosure confirms that Padilla was investigated by FINRA on September 17, 2018 regarding concerns that the stockbroker possibly failed to comply with FINRA Rule 4511 by causing his securities broker dealer employer to maintain false records or books. Padilla was also investigated for possibly failing to comply with FINRA Rule 8210 by neglecting to provide recorded testimony for FINRA personnel while he was under investigation.
Padilla has been identified in three customer initiated investment related disputes containing allegations of his misconduct while employed by Kestra Investment Services and WM Financial Services Inc. FINRA Public Disclosure reveals that a customer filed an investment related complaint involving Padilla’s conduct in which the customer requested unspecified damages based upon allegations that the customer was sold an annuity which had not been properly explained to her by Padilla when the purchase was made.
Padilla is also referenced in a customer initiated investment related complaint on August 28, 2019 in which the customer requested $154,700.00 in damages based upon allegations that a customer who suffered from diminished capacity had been sold a variable annuity by Padilla during the time that Padilla was associated with Kestra Investment Services. The stockbroker is the subject of another customer initiated investment related complaint on September 3, 2019 where the customer sought $100,000.00 in damages based upon accusations of Padilla’s inappropriate sale of an annuity to a Kestra Investment Services customer.
These claims were denied. He was subsequently terminated and Kestra sued him over a forgivable loan for $306,453.00 plus interest. He did not pay, so instead of going to debtors’ prison, his securities licenses were revoked.
Padilla has been twice terminated from employment by a securities broker dealer for misconduct. He was terminated by LPL Financial on November 4, 2015 during the time of an internal investigation of his possible unauthorized use of communication channels for investment related business. He was discharged by Kestra Investment Services on March 28, 2018 based upon accusations of his failure to comply with its rules on marketing and correspondence. Padilla was registered with National Securities Corporation between April 16, 2018 and September 20, 2018.
