James Michael Kennedy, of Chicago, Illinois, a stockbroker formerly registered with Saxony Securities, Inc., has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he effected trades in a customer’s account without authorization. Letter of Acceptance, Waiver and Consent, No. 2015047306901 (Nov. 2, 2017).
According to the AWC, from August of 2011 to January of 2015, discretion had been exercised by Kennedy in customer CB’s investment accounts. Apparently, two investment accounts were established by CB with Saxony in 2011, in which Kennedy was responsible for servicing the customer’s investment accounts. The AWC stated that discretion had been exercised by Kennedy in the customer’s account in violation of the firm’s policies. Evidently, Kennedy was cognizant of the firm’s restrictions regarding discretionary trading, but persisted in placing the unauthorized trades in the customer’s account. FINRA found that Kennedy’s conduct was violative of FINRA Rule 2010 and NASD Conduct Rule 2510(b).
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that a customer initiated investment related arbitration claim involving Kennedy’s conduct was settled for 350,000.00 in damages based upon allegations that Kennedy made unsuitable investment recommendations to the customer regarding options, stocks and over-the-counter equities transactions effected in the customer’s account between July of 2011 and January of 2015. FINRA Arbitration No. 15-02392 (July 16, 2016).
Kennedy’s employment with Saxony Securities, Inc. was terminated on April 28, 2015. Since April 16, 2015, he has been employed with Securities America, Inc.
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