Kenneth John Arellano, of Rochester, New York, a stockbroker registered with LPL Financial LLC, has been fined $5,000.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Arellano used unauthorized methods of communicating with customers regarding securities. Letter of Acceptance, Waiver, and Consent No. 2019064285601 (April 11, 2020).
According to the AWC, between October of 2018 and September of 2019, while he was associated with LPL Financial LLC, Arellano utilized a text messaging service that was not approved by LPL Financial LLC for conducting securities-related business. This included the transmission of information regarding customer investment profiles and account balances. In failing to retain copies of these communications for his firm’s records, Arellano violated FINRA Rules 2010 and 4511.
FINRA Public Disclosure shows that on April 11, 2020, a customer initiated investment related complaint involving Arellano’s conduct was resolved for $141,087.50 in damages. This settlement was based on allegations that Arellano made misrepresentations of material fact in connection with the sale of structured notes and a fixed annuity while he was associated with LPL Financial LLC. The specific period of the alleged activity stretched from August 8, 2019, to November 5, 2019.
FINRA Public Disclosure also indicates that on November 2, 2007, HR Block Financial Advisors Inc. permitted Arellano to resign based upon allegations relating to the sale of variable annuities and the submission of contract paperwork. The firm discovered instances where, contrary to firm policy, paperwork was being submitted directly to the insurance carrier in addition to being submitted to the firm.
Arellano was associated with LPL Financial LLC in Rochester, New York from October 11, 2013, to October 17, 2019. On September 20, 2019, LPL Financial LLC discharged Arellano based upon allegations that Arellano utilized unauthorized devices that could not be monitored by the securities broker dealer.
Arellano has been associated with Cadaret Grant Co. Inc. in Rochester, New York since October 21, 2019.