August 4, 2016 Comments (0) Blog

KCD Financial Investigated for Sale of Unregistered Securities

(Last Updated On: August 4, 2016)

Have you suffered losses investing with KCD Financial? If so, The White Law Group may be able to help.

According to FINRA’s NAC decision on August 2, KCD Financial allegedly allowed registered representatives to sell unregistered securities that were not exempt from registration and failed to reasonably supervise the registered representatives who sold the unregistered securities. The relevant events purportedly occurred in three of KCD’s offices located in: (1) Palm Beach Gardens, Florida; (2) Sun City, Arizona; and (3) Dallas, Texas.
KCD Financial, an independent broker-dealer since 2003, is a FINRA member firm. KCD is headquartered in De Pere, Wisconsin. As of May 2014, KCD had 61 representatives in 38 branch offices. KCD’s representatives operate as self-employed independent contractors.
The National Adjudicatory Council affirmed that KCD allegedly sold unregistered securities in violation of FINRA Rule 2010 and failed to supervise those sales in violation of NASD Rule 3010. The Council censured and fined KCD $73,000 for its sales of unregistered securities and its supervisory violations. In addition, they affirmed the Hearing Panel’s imposition of $5,556.48 in costs.
The White Law Group is investigating the liability that KCD Financial may have for losses sustained by their clients.  Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules.  If it can be determined that advisors violated FINRA rules and its employers failed to adequately supervise them, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.

For a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.