Kevin Meadows Failed To Cooperate With FINRA’s Investigation Into Misconduct
In May 2021, FINRA indefinitely barred Meadows from working in the brokerage industry. According to FINRA’s Letter of Acceptance, Waiver, and Consent with Meadows, he declined to provide documentation and information along with on-the-record testimony after a former employer disclosed a customer complaint on his record.
Just a year earlier, FINRA suspended Meadows for three months following an investigation into his aggressive trading of three accounts belonging to an elderly customer at Cape Securities, resulting in losses. According to FINRA:
- Meadows excessively and unsuitably traded three accounts of a senior customer
- Meadows controlled the trading in these three accounts by recommending almost all of the trades
Investor Dispute On Meadows’ Record Alleges Unsuitable And Excessive Trading
In April 2020, an investor filed a securities arbitration claim alleging that while working at First Allied Securities, Inc., Meadows “recommended investments that were unsuitable for them and failed to repay a loan. Claimants generally allege failure to supervise, excessive trading, breach of fiduciary duty, and unsuitability.” The dispute was settled for $35,000.
Meadows also has a series of tax liens disclosed on his Brokercheck Report, which is published by FINRA. When a broker is subject to significant liens, they may be financially motivated to engage in trading practices designed to generate higher commissions, also known as churning.
Meadows Allegedly Engaged In Excessive Trading, Otherwise Known As “Churning”
Churning is a serious issue in the securities industry. Churning, otherwise known as excessive trading, occurs when a stockbroker buys and sells securities in a customer’s account solely for the purpose of generating commissions. This is a violation of securities laws and FINRA Rules.
Did You Invest With Kevin Meadows?
Silver Law Group has extensive experience seeking and recovering losses related to churning and excessive trading. Our attorneys and forensic accountants can help determine whether an investment loss is the result of churning. If you believe your broker may have engaged in churning, Silver Law Group may be able to help recover your losses in a FINRA arbitration claim.
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers represent investors nationwide to help recover investment losses due to stockbroker misconduct such as churning. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingency fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.