Kenneth Taylor Faces Two-Year Suspension by FINRA

Kenneth Taylor (CRD #: 2166330), a broker registered with Capital Portfolio Management, has been suspended by FINRA, according to his BrokerCheck record, accessed on July 27, 2025. Read on if you have questions about his alleged conduct as a broker.

FINRA Suspension

On April 21, 2025, Kenneth Taylor and Percival Financial Partners consented to the entry of findings that they allegedly conducted a securities business while failing to maintain its minimum required net capital.

According to a Letter of Acceptance, Waiver & Consent (AWC), Percival Financial Partners’ available net capital had allegedly fallen to more than $79,000 below the minimum required amount by November 1, 2021 due to its non-allowable assets and equity withdrawals.

Further, the firm allegedly erroneously reported an Economic Injury Disaster Loan received from the U.S. Small Business Administration as a reduction of non-allowable assets.

The firm allegedly identified its net capital deficiency when it corrected this mistake. On November 9, 2021, Kenneth Taylor allegedly transferred $100,000 to the firm in an attempt to correct its capital deficiency. However, these funds were allegedly received through a personal loan from a customer, constituting a firm liability. The firm allegedly remained net capital deficient through December 31, 2021.

On April 1, 2022, Kenneth Taylor allegedly made capital withdrawals that caused a net capital deficiency exceeding $76,000. The firm allegedly remained net capital deficient through April 9, 2023, with a deficiency of more than $900,000 in that month. Kenneth Taylor allegedly made regular capital withdrawals during this period and caused the firm to issue at least seven checks totaling $130,000 from the firm’s bank account to his own.

During these periods of net capital deficiency, Kenneth Taylor allegedly permitted the firm to continue to conduct securities business.

Allegedly Failure to Promptly File Notices

As Percival Financial Partners’ Financial and Operations Principal, Kenneth Taylor was allegedly responsible for filing financial notifications when the firm was net capital deficient.

He allegedly timely filed the required notifications for certain periods of deficiency in 2021 and 2022, he allegedly caused the firm to fail to timely file notices with FINRA and the SEC for the periods of November 9, 2021 to December 31, 2021, and August 30, 2022 to April 9, 2023.

The AWC further alleged that Kenneth Taylor engaged in the following misconduct:

• Failure to accurately record capital withdrawals, a $100,000 transfer, and a $450,000 advanced deposit in the firm’s general ledger between at least November 1, 2021 and January 31, 2025, leading to the filing of 33 inaccurate FOCUS reports
• Failure to timely file the firm’s 2022 annual audit report, which allegedly contained material inaccuracies
• Conducting securities business while suspended by FINRA starting April 10, 2023

The AWC concluded that these allegations constituted violations of FINRA Rules 4110(b)(1) and 2010 on the part of Kenneth Taylor; and violations of Section 15(c)(3) of the Securities Exchange Act of 1934 and Rule 15c3-1 thereunder, and FINRA Rules 4110 and 2010 by Percival Financial Partners.

FINRA Rule 4110

FINRA Rule 4110(b)(1) requires firms to suspend business operations during periods when they fall out of compliance with the net capital requirements described in Rule 15c3-1 of the Securities Exchange Act of 1934.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Securities Exchange Act of 1934

Rule 15c3-1 of the Securities Exchange Act defines the net capital requirements for brokers and dealers.

Sanctions

Kenneth Taylor consented to the following sanctions:

• Two-year suspension from associating with FINRA members in all principal capacities
• Requirement to requalify as a principal by passing the requisite examinations
• $15,000 fine

His suspension took effect on May 19, 2025, and will end on May 18, 2027.

Percival Financial Partners consented to the following sanctions:

• Censure
• $150,000 fine, jointly and severally with Kenneth Taylor

You can read the full AWC here.

Background Information

Kenneth Taylor has passed the following exams:

• Compliance Officer Examination – Series 14
• Municipal Securities Principal Examination – Series 53
• Introducing Broker/Dealer Financial Operations Principal Examination – Series 28
• General Securities Principal Examination – Series 24
• Operations Professional Examination – Series 99TO
• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Investment Company Products/Variable Contracts Representative Examination – Series 6
• Uniform Securities Agent State Law Examination – Series 63

Kenneth Taylor is a registered broker in Maryland, Pennsylvania, and the District of Columbia.

He has also worked for Percival Financial Partners (CRD#:41813) and The Chapman Company (CRD#:19178).

Kurta Law Can Help

If you worked with Kenneth Taylor 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 that 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.