Leonard Charles Kinsman (Lenny Charles Kinsman) of Staten Island New York a stockbroker formerly associated with Wells Fargo Advisors Financial Network LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that he intentionally failed to comply with FINRA when he was investigated for complaints in regard to his sales practices. Letter of Acceptance Waiver and Consent No. 2018060933401 (May 20, 2020).
According to the AWC, on July 4, 2019, FINRA received a Uniform Termination Notice for Securities Industry Registration from Wells Fargo Advisors which revealed that Kinsman was terminated by the securities broker dealer for engaging in misconduct.
On April 23, 2020, Kinsman was asked by FINRA personnel to provide recorded testimony as to the circumstances which caused him to be terminated. The AWC stated that Kinsman’s legal counsel corresponded with FINRA personnel on April 23, 2020 at which point FINRA was made aware that the stockbroker would not be cooperating with its request. The AWC stated that Kinsman refused to testify in violation of FINRA Rules 2010 and 8210.
Kinsman has been identified in five customer initiated investment related disputes concerning accusations of his misconduct during the time that he was employed by Wells Fargo, Royal Hutton Securities Corp. and Citigroup Global Markets Inc. FINRA Public Disclosure reveals that a customer initiated investment related complaint in reference to Kinsman’s conduct was resolved for $200,000.00 in damages based upon accusations that the customer was inappropriately sold an auction rate security during the time that Kinsman was associated with Citigroup.
Another customer initiated investment related complaint involving Kinsman’s conduct was settled for $180,000.00 in damages based upon allegations that the customer’s poor investment performance was caused by Kinsman’s unsuitable transactions at Royal Hutton Securities Corp. According to the complaint, misrepresentations and omissions had been made by the stockbroker. The complaint also alleges that the customer’s account was churned. An additional customer filed an investment related arbitration claim concerning Kinsman’s activities where the customer sought $50,000.00 in damages founded on accusations that misrepresentations were made to the Wells Fargo customer by Kinsman and that the stockbroker’s investment recommendations failed to be appropriate for the customer. FINRA Arbitration No. 16-01381 (May 17, 2016).
On February 22, 2017, another customer initiated investment related arbitration claim in reference to Kinsman’s conduct was resolved for $24,000.00 in damages based upon accusations that the customer had been provided with false information with regard to risks, returns and the guarantees on a variable annuity sold by Kinsman during the time that he was associated with Wells Fargo. Kinsman is also the subject of a customer initiated investment related arbitration claim which was settled for $995,000.00 in damages based upon allegations including the falsification of business records and forgery between 2012 and 2017. According to the claim, the Wells Fargo customer received investment advice from Kinsman that failed to be suitable. FINRA Arbitration No. 19-00957 (May 9, 2020).
Kinsman’s employment with Wells Fargo was terminated on July 4, 2019. FINRA Public Disclosure reveals that the stockbroker has been employed by at least two different securities broker dealers who have been expelled by regulators for violation of federal securities laws or who are otherwise defunct.
