John Kaleihiehie Kai, of Hilo, Hawaii, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon allegations that he did not provide FINRA staff with information about Kai’s business activities. Case No. 2017053680001 (September 12, 2017). Kai was previously suspended on July 3, 2017, but did not seek to have his suspension lifted by the deadline FINRA imposed, resulting in the sanction of a bar.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Kai has been separated from employment twice regarding his misconduct. Particularly, on July 31, 2010, his registration with Commonwealth Financial Network was terminated based upon allegations that he engaged in unauthorized correspondence; the firm accused him of failing to comply with FINRA Rule 2210.
He was then fired by First Allied on April 19, 2017, based upon allegations that he obtained funds from customers under false pretenses, where he apparently informed customers that accounts would be established for them when they never had. The firm also alleged that Kai engaged in unapproved loan transactions with customers, unauthorized customer communications, and outside business activities and private securities transactions that were never disclosed by the firm.
Moreover, on December 6, 2010, a customer initiated investment related written complaint involving Kai’s conduct was settled for $20,000.00 in damages based upon allegations that Kai placed unsuitable equity transactions in the customer’s account.
Kai has not been associated with any FINRA member broker dealer following his termination from First Allied Securities, Inc.
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