V. Cullen Kempson III, a/k/a Voigt C. Kempson, a stockbroker formerly employed by Commonwealth Financial Network, submitted a letter of Acceptance, Waiver, and Consent (AWC) in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he made unauthorized discretionary trades in his deceased customer’s accounts.
Voigt Kempson, of Sparta, New Jersey, was found by FINRA to have effected 40 discretionary trades in the accounts of his deceased customer even though he was aware of his customer’s death. Although Mr. Kempson had been authorized to effect discretionary trades while the customer was alive, Mr. Kempson continued to trade in the customer’s accounts even after her death. Further, FINRA found that Mr. Kempson neglected to inform his member firm of the customer’s death.
Consequently, Mr. Kempson was fined $5,000 and was suspended from association with any FINRA member in any capacity for thirty days. The suspension was in effect from June 5, 2017 through July 4, 2017.
Stockbrokers, registered representatives, and other financial industry professionals have been known to engage in many types of misconduct which are in violation of industry rules and procedures. In order to protect customers from such misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these rules requires supervisors to monitor employees to ensure compliance 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/or their supervisors fail to establish and implement these protective supervisory rules, they may be held liable to account holders for losses which result from the employees’ misconduct. As a result, account holders who have suffered losses due to unauthorized transactions or other types of stockbroker misconduct can bring forth claims to recover damages against brokerage firms, like Commonwealth Financial, which have a duty to supervise its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Commonwealth Financial account due to your stockbroker’s unauthorized trades? 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 Commonwealth Financial stockbrokers who may have engaged in unauthorized trading and caused investors’ losses.
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 35 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 firstname.lastname@example.org, 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.