Jeffrey Collins Kinder of St. Louis Missouri is a stockbroker formerly registered with Huntleigh Securities Corporation who has been fined twenty thousand dollars and suspended for fifteen months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he made unsuitable investment recommendations to customers in regard to unit investment trusts. Letter of Acceptance Waiver and Consent No. 2015043587601 (Jan. 26 2018).
According to the AWC, from January 2011 to February 2015, five customers were advised by Kinder to execute short-term switches of mutual fund class A shares as well as unit investment trusts. Customers reportedly paid between 3.95 percent to 4.95 percent on each unit investment trust purchase.
The AWC stated that throughout that period, customers were often advised by Kinder to sell their existing unit investment trust positions prior to the time that they matured. Particularly, some customers were reportedly told to sell their unit investment trust positions in as little as two to four months following their purchase. The AWC stated that recommendations were often made by Kinder for customers to sell unit investment trust positions in under one year when those products contained two year maturities. Kinder also reportedly recommended that customers take the proceeds from premature sales of investments and buy other unit investment trusts carrying similar costs. Apparently, there were at least sixty occasions in which customers were exposed to Kinder’s unsuitable investment recommendations in that regard.
Additionally, the AWC stated that on twenty occasions, Kinder made recommendations to customers that they buy class A mutual fund shares, only to liquidate them in under one year and then buy other mutual fund shares containing up front sales loads. As a result of Kinder’s recommendations, customers reportedly paid at least $98,000.00 in unnecessary sales charges. FINRA concluded that Kinder’s recommendations were not suitable based upon the frequency in which transactions were executed as well as the costs pertaining to the transactions. Kinder was found by FINRA to have violated FINRA Rules 2010 and 2111, as well as NASD Conduct Rule 2310.
FINRA Public Disclosure reveals that on September 29, 2008, a customer filed an investment related written complaint involving Kinder’s conduct, in which the customer requested $80,000.00 in damages based upon accusations that the customer’s account was negligently managed and that misrepresentations were made regarding the customer’s corporate debt holdings.
Kinder was terminated by Huntleigh Securities Corporation on June 30, 2017, supported by allegations that he was subject of a Wells Notice relating to accusations of his possible violations of FINRA rules caused by his unit investment trust and mutual fund trading activities.
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