Julius F. Kenney IV, formerly associated with the Calhoun Georgia office of LPL Financial, Inc., was barred last month by the Financial Industry Regulatory Authority for the failure to cooperate with FINRA in connection with the investment of $215,000 by one of his customers in his Mellow Mushroom business.
Kenny Was Terminated by LPL Financial & Investigated by FINRA
Mr. Keeny’s plight appears to have began in May 2015, when Keeny was terminated by LPL Financial following a complaint in April 2015 by one of his customers concerning a $215,000 investment in Keeny’s Mellow Mushroom business. Of course, LPL Financial denied Keeny’s customer’s complaint, denying all responsibility, because after all they never authorized him to sell mushrooms, an undisclosed outside business activity. Mr. Keeny was however authorized by LPL Financial to provide investment advice to his clients, also LPL Financial clients, and unfortunately for everyone involved, Mr. Keeny’s investment advice included that at least one of his customers invest a hefty sum in Kenny’s Mellow Mushroom business.
Thereafter, matters mushroomed. As FINRA began to look at the circumstances surrounding Keeny’s termination, and requested that Keeny provide them with information by no later than May 29, 2015. However, on May 29, 2015, according to an e-mail from Kenney to FINRA staff also dated May 29,2015, Kenney acknowledged that he received FINRA’s request but that he will not cooperate with Enforcement’s investigation at any time.
In response, FINRA barred Keeny for life.
Courts & Securities Arbitration Panels
Securities arbitration panels and courts, as a general matter, almost routinely find broker-dealers, such as LPL Financial legally or financially responsible for the approved or unapproved extracurricular, outside business activities of their registered representatives, particularly when it involves their customers.
Investors suffering losses or damages from outside investments in mushrooms or fish farms by their stockbroker may be able to recover their investment losses by suing the broker’s employer.
Guiliano Law Group
Investors suffering losses or damages from such conduct may be able to recover their investment losses. Our practice is limited to the representation of investors in claims, for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.