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Investor Alleges Kennister Daley Committed Fraud and Other Violations

Jun 3, 2022 Unsuitable Investments

Kennister Daley (CRD #: 1774653), a broker registered with Allstate Financial Services, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on May 28, 2022. If you want to know more about Kennister Daley’s conduct as a broker, keep reading.

Investor Disputes

On February 22, 2022, an investor alleged that Kennister Daley engaged in fraud relating to the offer or sale of securities as well as common law fraud, misrepresented and omitted material facts, committed unspecified violations of suitability, and engaged in negligence related to the purchase of a non-traded real estate investment trust (REIT).

The client seeks $100,001 in damages in this pending dispute.

In a dispute filed on January 5, 2017, an investor alleged Kennister Daley engaged in excessive and unsuitable trading in their accounts from April 2015 to February 2016. The investor sought $65,000 in damages, but the dispute was denied by the firm.

However, investors should be aware that firms don’t need to permit an outside review before denying a dispute. Investors can still pursue FINRA arbitration and potentially recover their losses following a denial.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must consider their clients’ age, tax status, risk tolerance, and other information contained in their profile.

Excessive trading, also known as churning, is quantitatively unsuitable—in other words, the sheer quantity of transactions becomes unsuitable for the investor, even if the individual trades may be suitable in isolation.

Investors who feel their losses are related to unsuitability may be able to recover their funds by pursuing FINRA arbitration.

FINRA Rules 2020 and 2010

FINRA Rule 2020 bans the use of manipulative, deceptive, and otherwise fraudulent tactics to influence the purchase or sale of securities. This includes the misrepresentation or omission of information related to investments, such as their risks, fees, or potential returns.

Many forms of unethical or unprofessional behavior violate FINRA Rule 2010, which holds brokers to high standards of commercial honor. 

What is a Real Estate Investment Trust?

A real estate investment trust (REIT) is a company that owns and operates real estate properties. Investors can purchase shares in a REIT and accrue dividends without the hassle of operating the real estate themselves. However, REITs and especially non-traded REITs are illiquid, making them unsuitable for many investors’ short-term goals. Non-traded are risky, speculative investments. 

What Qualifies as Broker Negligence?

Many broker behaviors can qualify as negligent, ranging from unsuitable investment recommendations to excessive trading. Investors who feel their losses were caused by broker negligence may be able to recoup their losses through FINRA arbitration.

Background Information

Kennister Daley has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • 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

Kennister Daley is a registered broker in Florida and Georgia.

He has also worked for the following firms:

  • Dawson James Securities (CRD#:130645)
  • Newbridge Financial Services Group (CRD#:130814)
  • Newbridge Securities (CRD#:104065)
  • National Securities Corporation (CRD#:7569)
  • Sterling Financial Investment Group (CRD#:41506)
  • Joseph Charles & Associates (CRD#:3949)
  • Barber & Bronson (CRD#:26582)
  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
  • Rosenkrantz Lyon & Ross (CRD#:3227)
  • Kimbridge & Company (CRD#:15631)
  • The David-Maxwell Company (CRD#:16876) 

Kurta Law Can Help

If you worked with Kennister Daley 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.