Kevin Kimball Meadows of Liverpool New York a stockbroker formerly registered with First Allied Securities has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that he refused to cooperate with FINRA when it investigated allegations of a customer complaint against the stockbroker at First Allied Securities. Letter of Acceptance Waiver and Consent No. 2020067652701 (May 28, 2021).
According to the AWC, on April 8, 2021, FINRA asked Meadows to hand over documents and information so that it could look into a customer complaint that had been brought against the stockbroker when he was associated with First Allied Securities. Meadows was also asked by FINRA to testify on May 3, 2021. The regulator indicated that Meadows did not cooperate with those requests. FINRA again asked for Meadows to testify on May 18, 2021 but the stockbroker never showed up. Meadows subsequently indicated that he would not provide any response to the regulator’s requests. He violated FINRA Rules 2010 and 8210. Meadows was barred for this reason.
This is not the first time that Meadows has been sanctioned by FINRA. He was suspended from associating with any FINRA member in any capacity for three months supported by accusations that he excessively traded in customer accounts when he was associated with Cape Securities Inc. Letter of Acceptance Waiver and Consent No. 2018057846301 (Jan. 28, 2020).
The AWC stated that a customer’s three accounts were traded excessively by the stockbroker given high cost-to-equity ratios and turnover rates. As an example, the customer’s one account had a cost-to-equity ratio that was as high as 53 percent. The account had a turnover rate that was as high as 10.10. Meadows controlled the elderly customer’s accounts since nearly all of the stockbroker’s recommended trades were approved by the customer. FINRA indicated that the customer sustained $39,671.00 in losses because of the stockbroker. Meadows’ recommended trades were not suitable given the customer’s objectives and financial circumstances. He violated FINRA Rules 2010 and 8210.
Meadows has been identified in five customer initiated investment related disputes concerning allegations of his misbehavior while registered with securities broker dealers including First Allied Securities, UBS Financial Services and JC Bradford Co. LLC. FINRA Public Disclosure confirms that a customer initiated investment related complaint regarding Meadows’ conduct was settled to resolve accusations of a breach of fiduciary duty by Meadows as it pertained to his recommendations of stocks for the customer’s account at JC Bradford Co.
Another customer initiated investment related FINRA securities arbitration claim involving Meadows’ conduct was settled for $50,000.00 in damages based upon allegations of unauthorized margin use and unauthorized trading of over-the-counter equities causing the customer to experience losses at UBS Financial Services. Meadows is also the subject of a customer initiated investment related written complaint in which the customer requested compensatory damages based on allegations of churning of the customer’s equity portfolio.
On February 12, 2021, a different customer initiated investment related complaint involving Meadows’ conduct was resolved for $35,000.00 in damages founded on accusations that Meadows breached a fiduciary duty to the customer in reference to equities transactions at First Allied Securities. According to the claim, the stockbroker recommended unsuitable and excessive trades. The claim also alleges First Allied Securities’ failure to supervise Meadows.
Meadows was also associated with IBN Financial Services between May 17, 2018 and February 15, 2020.
