Financial Advisor Fraud Attorneys

Retail Investors Were Defrauded by Fired Western International Securities Broker Christopher Booth Kennedy, Alleges SEC . Former Financial Advisor Agrees to Pay Over $2.1M To Settle Regulator’s Fraud Lawsuit

If you are an investor who suffered losses while working with ex-Western International Securities stockbroker Christopher Booth Kennedy, contact Shepherd Smith Edwards and Kantas Financial Advisor Fraud Attorneys (investorlawyers.com) today. We are continuing to investigate claims by retail investors that he may have allegedly defrauded.

Kennedy, who was barred by the Financial Industry Regulatory Authority last year, settled US Securities and Exchange Commission (SEC) charges accusing him of running a scam to defraud retail investors by unsuitably recommending costly investment strategies, including the making of short-term bets, and then allegedly concealing “substantial” losses (even inflating false returns) using bogus financial statements. Without denying or admitting to wrongdoing, the former California broker will pay more than $2.1M, including a $958K penalty and $1.8M in disgorgement plus prejudgment interest.

The SEC contends that Kennedy violated its Regulation Best Interest with the high-volume, short-term trading strategy that he recommended to customers. Meanwhile, he and his former brokerage firm earned high commissions through transactions of more than $363M. The customers who were affected lost more than $9M. The SEC’s case even highlighted one investor that was purportedly sent a falsified statement showing an account with assets of at least $5M when, in fact, those assets were only worth $100K at the time.

According to Christopher Booth Kennedy’s CRD, during his 18 years in the industry, he worked at several firms, including, most recently, Western International Securities and Spartan Capital Securities. Of the 13 disclosures noted, 10 of them are customer disputes that have all resulted in settlements except for one that remains pending in which the claimant is requesting more than $2.4M in damages. Allegations against Kennedy have included unauthorized trading, misrepresentations, breach of fiduciary duty, breach of contract, negligence, and more.

This is not the first time that a Western International Securities broker has been accused of Reg BI violations. In July 2024, also without agreeing or denying wrongdoing, Western International Securities agreed to pay a $160K penalty to settle SEC charges alleging violation of Regulation Best Interest involving five of the firm’s registered representatives who sold GWG L Bonds. GWG Holdings, an alternative asset firm, is accused of running a more than $1.6B Ponzi scam.

Failure To Supervise and Reg BI Violations Can Lead To Broker Fraud Claims

Brokerage firms have a duty to properly supervise their registered representatives’ activities in customers’ accounts. When a failure to do this properly enables financial advisors to disregard customers’ best interests and even, in the most egregious cases, purposely scam them, a victim may be able to file a lawsuit against the broker-dealer for damages.

Shepherd Smith Edwards and Kantas Financial Advisor Fraud Attorneys represent investors who have been the victims of financial advisor fraud, failure to supervise, Reg BI violations, misappropriation, unsuitable recommendations, misrepresentations and omissions, and more. We are also currently representing a number of investors who sustained serious losses because a Western International Securities broker sold them GWG L Bonds.

To Find Out If Your Investor Losses While Working With Ex-Stockbroker Christopher Kennedy May Merit Grounds for a Lawsuit:

You want to work with a trusted investment loss recovery law firm that has the skills, experience, and resources to maximize your chances for a full financial recovery. Call our Financial Advisor Fraud Attorneys at (800) 259-9010 or fill out this form.