Kenneth Spielman Suspended by FINRA
Kenneth Spielman (CRD #: 2503634), a broker formerly registered with LPL Financial, has been suspended by FINRA, according to his BrokerCheck record, accessed on July 22, 2022. Keep reading if you have questions about Kenneth Spielman’s conduct as a broker.
Suspension by FINRA
On June 23, 2022, Kenneth Spielman consented to the entry of findings that he allegedly engaged in unapproved outside business activities while employed by LPL Financial.
According to an Acceptance, Waiver & Consent (AWC) agreement, Kenneth Spielman allegedly incorporated a company in New York in May 2018 to purchase a marina. He allegedly held the role of the company’s secretary and treasurer. The AWC alleges that, in June 2018, Kenneth Spielman and other individuals purchased the marina and, afterward, Kenneth Spielman participated in the operation of the marina.
Kenneth Spielman allegedly requested approval from LPL Financial for these outside business activities in June 2018, following the purchase of the marina. In return, LPL Financial allegedly requested further information, which Kenneth Spielman provided in November 2018.
Though LPL Financial allegedly approved the outside business activities, the AWC alleges Kenneth Spielman continued to participate in these activities during the period between requesting and receiving approval.
The AWC concludes that Kenneth Spielman’s alleged unapproved outside business activities violated FINRA Rules 3270 and 2010.
FINRA Rules 3270 and 2010
FINRA Rule 3270 requires brokers to provide disclosure to their firm before participating in any outside business activities. Brokers must disclose their role in the business and any compensation they expect to receive.
FINRA Rule 2010 requires brokers to maintain high standards of commercial honor and ethical conduct.
Sanctions
Kenneth Spielman consented to the following sanctions:
- $2,500 fine
- One-month suspension from associating with FINRA members in all capacities
His suspension began on July 18, 2022, and will end on August 17, 2022.
You can read the full AWC filing here.
Other Business Activities
Kenneth Spielman’s detailed BrokerCheck report lists the following outside business activities:
- Certified Public Accountant working for Professional Tax Savers (an entity of LPL Business) and
- Hoffman & Bentovim CPAs, providing tax preparation and accounting services.
- Selling non-variable insurance for Crump Insurance Sales, Crump Insurance Agency, and Algreen.
- Owner of Atlantic Cove Marina LLC, currently without management involvement, control over the company’s funds, or any other roles.
- Hampton Dune Holdings, LLC, a holding corporation to hold ownership of the Atlantic Cove Marina.
- 3 Spring Hill Marine Holdings, a holding company that holds the shares of Hampton Dune Holdings.
Background Information
Kenneth Spielman has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 24 – General Securities Principal Examination
He previously worked for the following firms:
- LPL Financial (CRD#:6413)
- Invest Financial Corporation (CRD#:12984)
- Prime Capital Services (CRD#:18334)
- Royal Alliance Associates (CRD#:23131)
- GKN Securities (CRD#:19415)
Kurta Law Can Help
If you worked with Kenneth Spielman and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.
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