Kenneth S. Tyrrell, of Richmond Virginia, a stockbroker registered with UBS Financial Services Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that Tyrrell, inter alia, sold away from his firm, engaged in unapproved outside business activities, and inaccurately represented his activities to his firm when questioned. Letter of Acceptance, Waiver and Consent, No. 2016051259501 (Dec. 8, 2017).
According to the AWC, in March of 2009, Tyrrell was responsible for advising a high net worth customer in reference to the customer’s financial affairs. The AWC reported that in May of 2011, Tyrrell then effected at least thirteen million dollars in transactions with that customer away from UBS, and without Tyrrell ever having apprised UBS of his involvement in the private securities transactions.
The AWC revealed that Tyrrell’s private securities transactions pertained to debt securities and private equity investments involving the customer. Tyrrell reportedly positioned the investments that the customer selected, and partook in due diligence relating to the securities transactions. Tyrrell also evidently assisted the customer in the creation of businesses that were used to effect the transactions away from the firm, and facilitated the customers’ fund transfer between UBS and the companies that the customer invested in.
FINRA found that Tyrrell failed to report those eleven private securities transactions prior to engaging in them. Consequently, FINRA found that his conduct was violative of FINRA Rules 3280 and 2010, as well as NASD Rule 3040.
The AWC additionally stated that five outside business activities were pursued by Tyrrell without him ever having notified UBS about them. Evidently, each outside business activity concerned the high net worth customer. Apparently, Tyrrell was an officer of a company which the customer utilized to effect investments away from UBS for three of the outside business activities. The AWC revealed that Tyrrell was also a co-founder with the customer on another company in regard to a fourth business activity.
Further, Tyrrell and the customer established a concierge services entity which Tyrrell’s spouse owned and Tyrrell became involved with. The AWC stated that this concierge company was created in June of 2013 to assist the customer with personal services. Tyrrell became involved in the hiring of staff to fill positions with that concierge business. The AWC confirmed that from June of 2013 to June of 2016, an estimated $498,000.00 was transferred between the UBS account that the customer owned to the concierge business to cover costs of services and goods.
Thereafter, in June of 2016, concerns had been reportedly raised by the customer about the concierge business. The AWC stated that Tyrrell audited the expenses incurred by the concierge business, subsequently returning $130,000.00 to the accounts at UBS owned by the customer, comprised in part of funds that had not been spent by the customer which were held in the banking account owned by the concierge business. FINRA found Tyrrell’s involvement in outside business activities without ever having gained approval from his firm to constitute violations of FINRA Rules 3270 and 2010.
FINRA Public Disclosure reveals that on May 4, 2001, a customer filed an investment related written complaint involving Tyrrell’s conduct, where the customer sought $23,000.00 in damages supported by allegations that while Tyrrell was associated with First Union Securities, Inc., he effected unsuitable mutual fund transactions in the customer’s account. Subsequently, on November 21, 2001, a customer filed an investment related written complaint regarding Tyrrell’s activities, in which the customer sought $73,000.00 in damages founded on accusations that Tyrrell effected unauthorized mutual fund trades in the customer’s account.
Tyrrell was fired from UBS Financial Services Inc. on August 8, 2016, based on allegations that he engaged in outside business activities and sold away from the firm. Tyrrell was later employed with Cary Street Partners from August 5, 2016 to October 6, 2017, at which point he was terminated as a result of FINRA’s investigation into accusations of his private securities transactions.
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