Kenneth Lee Jones, of New York, New York, a stockbroker formerly registered with Aegis Capital Corp., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to provide FINRA with information during FINRA’s investigation into allegations of Jones’ sales practice violations referenced by Aegis Capital Corp. Letter of Acceptance, Waiver and Consent, No. 2016051704301 (July 6, 2017).
According to the AWC, Jones was fired from Aegis Capital Corp on May 5, 2017, based upon allegations that he engaged in outside business activities that were not disclosed to the firm. Following up in this regard, FINRA contacted Jones in June of 2017 to request that Jones provide recorded testimony before FINRA staff, according to Rule 8210.
The AWC stated that Jones’ counsel eventually confirmed with FINRA on June 15, 2017, that the request for Jones’ testimony had been received but that Jones would at no point cooperate. As a result of failing to testify, FINRA found Jones’ conduct violative of FINRA Rules 2010 and 8210, resulting in his bar.
FINRA Public Disclosure reveals that Jones has been identified in five customer initiated investment related disputes pertaining to allegations of his wrongdoing while he was associated with Edward Jones, Raymond James Financial Services, Inc., as well as Aegis Capital Corp. Specifically, on September 11, 2002, a customer filed an investment related written complaint involving Jones’ conduct, in which the customer requested $5,000.00 in damages based upon allegations that Jones failed to execute upon the customer’s instructions in reference to asset backed debt investments effected in the customer’s account.
Subsequently, on June 20, 2005, a customer initiated investment related written complaint involving Jones’ conduct was settled for $5,899.93 in damages based upon allegations that Jones effected equity transactions in the customer’s account without authorization. Moreover, on July 22, 2005, another customer pursued an investment related claim pertaining to Jones’ activities, wherein the customer sought $15,000.00 in damages based upon allegations that Jones misled the customer about a loan arrangement. Additionally, on May 9, 2017, a customer initiated investment related written complaint involving Jones’ conduct was settled for $95,000.00 in damages based upon allegations that Jones breached his fiduciary duties and made unsuitable investment recommendations to the customer concerning real estate securities.
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