According to FINRA, Kathleen Kincade (CRD # 2634321, Irvine, CA) submitted an AWC in which she was fined $5,000 and suspended for 30 days from the securities industry.
In October 2015, while registered with FINRA-regulated Firm Wells Fargo, Kincade allegedly caused two domestic wire disbursements totaling $349,947.53 to be effected from the account of a customer to bank accounts held by third parties.
Purportedly, Kincade processed the wires based on e-mailed instructions that she received from an impostor who had hacked the customer’s email account. In each instance, Kincade falsely represented in the firm’s internal systems that she had verbally confirmed the wire disbursement instructions with her customer, which was not true, according to the settlement document.
Apparently, Kincade fell prey to a type of phishing scam that hackers use when targeting financial advisers; the fraudster hacks into a client’s email, poses as the client in email exchanges with the adviser and then requests an electronic transfer of cash to an outside account.
Firms typically have rules that require the adviser speak to the client and verify the request before making the transfer. And that’s where Ms. Kincade fell short, according to the Finra settlement.
A series of three wire transfers were made in the matter; after it learned they were fraudulent, Wells Fargo was able to reverse one transfer. It then reimbursed the client for the other withdrawals.
For FINRA’s full findings see FINRA Case # 2016048659801
According to FINRA BrokerCheck, Kincade was registered with Wells Fargo
Advisors Financial Network in Irvine, CA from 05/2007 – 01/2016. KIncade was discharged from Wells Fargo in January 2016.
If you suffered losses investing with Kathleen Kincade, the attorneys at The White Law Group may be able to help. For a free consultation, please call (888) 637-5510.
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on the firm, visit www.whitesecuritieslaw.com.