FINRA Suspends Broker Todd Kling After Excessive Trading

Todd Kling (Todd Franklin Kling CRD# 3034284) is a currently registered broker and investment advisor employed with Joseph Stone Capital L.L.C. (CRD#: 159744) in New York, NY. His previous employers include Royal Alliance Associates, Inc. (CRD#:23131), First Midwest Securities, Inc. (CRD#:21786), and FMSI Advisers (CRD#:21786), also of New York, NY. His first employer, First Republic Group, LLC (CRD#: 39781), was expelled by FINRA on 9/23/2009. He has been in the industry since 1999.

According to a FINRA disciplinary action dated 12/17/2021, Kling was found to have excessively and unsuitably traded one customer’s account. This particular client was not only a retired psychiatrist but also a senior investor. Between March 2018 and November 2019, Kling recommended that the client place a total of 115 trades in his account. The client accepted Kling’s recommendations and made the trades.

The customer’s account had an average month end equity of $5,414,465, resulting in an annualized turnover rate of more than 12. The trades recommended by Kling caused this customer to pay commissions, trading costs and margin interests that totaled $153,879.00. This trading resulted in an annualized cost to equity ratio of more than 35%. For the client to break even, the customer’s account would have had to grow by more than 35% annually just to reach the “break-even point.”

Because these trades were excessive, FINRA imposed a three-month suspension from any association with a member broker, which ends on 4/17/2022.

Kling also has four tax liens in his record:

A lien filed on March 6th, 2020, for $14,547.53 for tax years 2017 and 2018
A lien filed on July 3rd, 2018, for $8,043.70. This total was four. 2015 and 2016
A lien filed on May 13th, 2016, in the amount of $18,495.38 for taxes in 2014
A lien filed on April 21st, 2015, for $52,976.09 for disallowances for tax years 2008 and 2009

Kling indicates that he is up to date on all his tax filings and payment plans.

Did You Invest With Todd Kling?

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. 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 contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.