National Securities Corporation Stockbroker Investigated For Private Securities Transactions

Kyle Patrick Harrington, of San Diego, California, a stockbroker formerly registered with National Securities Corporation, has become the subject of a Financial Industry Regulatory Authority (FINRA) investigation, which focuses on allegations that Harrington possibly engaged in private securities transactions, converted customer funds, and failed to cooperate with FINRA regarding allegations of his misconduct. FINRA Matter No. 2015047303901 (Dec. 1, 2016).
FINRA Public Disclosure reveals that Harrington has been named in six customer disputes concerning allegations of his misconduct while employed at CIBC World Markets Corp, Matrix Capital Group, Harrington Capital Management, LLC, and First Allied Securities, Inc. Particularly, on July 1, 2001, a customer initiated investment related arbitration claim involving Harrington’s conduct was settled for $15,000.00 in damages based upon allegations that Harrington effected an unauthorized equity transaction in the customer’s account.
On June 26, 2001, a customer filed a complaint involving Harrington’s actions, in which the customer requested $12,500.00 in damages based upon allegations that Harrington effected unauthorized equity purchases in the customer’s account. Subsequently, on April 8, 2004, a customer complaint concerning Harrington’s activities was resolved for $25,000.00 in damages based upon allegations that Harrington charged the customer excessive commissions and effected trades in the customer’s account on an unauthorized basis.
On June 28, 2011, another customer filed a written complaint regarding Harrington’s conduct, in which the customer requested damages of $5,001.00 based upon allegations that Harrington placed stock trades in the customer’s account without authorization. Subsequently, on May 10, 2013, a customer initiated investment related arbitration claim regarding Harrington’s activities was settled for $15,000.00 in damages based upon allegations that Harrington made omissions and misrepresentations to the customer concerning a real estate security.
Additionally, on December 6, 2016, a customer was awarded $150,000.00 in damages pursuant to a customer initiated investment related arbitration claim involving Harrington’s conduct, based upon allegations that Harrington, in the course of transacting with the customer regarding penny stocks, breached his fiduciary duty, violated California Corporations Code Section 25210(a), and committed fraud in violation of Securities Exchange Act of 1934 Section 10(b) and Rule 10b-5.
On June 15, 2016, a customer filed an investment related arbitration action pertaining to Harrington’s activities, in which the customer has requested $2,400,000.00 in damages based upon allegations that include unauthorized trading, unsuitable investment recommendations, and misrepresentations concerning investments in variable annuities, equipment leasing investments, limited participation interests, and direct investment programs. The customers additionally alleged that First Allied Securities failed to supervise Harrington’s activities.
Harrington’s registration with National Securities Corporation ended on November 18, 2016. Since December 7, 2016, Harrington has been registered with Aurora Capital LLC.