William Robert Kinyon, a former registered representative with the Castleford, Idaho branch of NYLIFE Securities LLC (NYLIFE Securities) submitted a Letter of Acceptance, Waiver and Consent in which he consented to, but did not admit to or deny, the entry of the Financial Industry Regulatory Authority’s (FINRA) findings that he converted funds from an elderly customer’s account for personal use.
According to FINRA, William Kinyon’s elderly brokerage customer told him that she wanted to deposit $3,000 into one of her variable annuity accounts. Mr. Kinyon, however, deposited the check into his personal checking account and allegedly used the funds to make multiple personal purchases at stores such as Walmart and Costco.
Mr. Kinyon’s conversion of his customer’s funds was a violation of FINRA Rule 2150(a) which prohibits FINRA members from making “improper use of a customer’s securities or funds.” Consequently, William Kinyon, of Castleford, Idaho, was barred from association with any FINRA member in any capacity.
Stockbrokers and other financial industry professionals have been known to engage in many types of fraudulent behavior, such as conversion of funds. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system. These rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If brokerage firms and their supervisors do not establish and implement these protective measures, they may be held liable to account holders for losses flowing from the misconduct. As a result, investors who have suffered losses due to a broker or registered representative’s conversion or other fraudulent and unlawful misconduct can bring forth claims to recover damages against broker-dealers like NYLIFE Securities, which have a duty to supervise its employees in order to prevent the above-described misconduct.
Have you suffered losses in your NYLIFE Securities investment account due to your stockbroker’s fraudulent and/or unlawful misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against financial professionals for unsuitable recommendations, conversion of funds, mismanagement of accounts, and/or other unauthorized and illegal conduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 33 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.