Former Western International Broker Settles SEC Charges for $2.1 Million
The U.S. Securities and Exchange Commission announced that it has filed a civil injunctive action against former broker Christopher Booth Kennedy for securities law violations that resulted in millions of dollars of losses for his former brokerage customers. Kennedy has agreed to pay more than $2.1 million in total to settle the charges.
The SEC reported that, between February 2021 and July 2021, Kennedy, who formerly worked as a registered representative at Western International Securities Inc., made false and misleading statements to his customers regarding the value and success of his trading strategy. According to the SEC’s complaint, Kennedy’s fraudulent conduct included sending one customer falsified account statements that grossly overstated the value of the customer’s account.
The complaint further alleged that between July 2020 and July 2021, Kennedy also violated Regulation Best Interest by recommending a short-term, high-volume investment strategy in 19 brokerage retail customer accounts without a reasonable basis for doing so. The SEC said that Kennedy’s recommendations resulted in more than $363 million in total transactions spread through the 19 accounts, ultimately resulting in over $9 million in customer losses.
Kennedy has agreed to settle the above charges by consenting to the entry of an injunction. Kennedy will pay $958,134 in disgorgement with $218,267 in prejudgment interest and a $958,134 civil penalty.
In November of 2023, FINRA barred Kennedy in relation to this conduct.
Similarly, in 2022, the SEC charged Western International Securities and five of its registered representatives with violating Reg BI.
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