SEC Charges Former Royal Alliance Adviser with Theft of $3 Million
The Securities and Exchange Commission filed an enforcement action in federal court in Boston, charging Cape Cod-area investment adviser Kimberly Pine Kitts with defrauding multiple clients by stealing more than $3 million from their investment and retirement accounts.
The Securities and Exchange Commission filed an enforcement action in federal court in Boston, charging Cape Cod-area investment adviser Kimberly Pine Kitts with defrauding multiple clients by stealing more than $3 million from their investment and retirement accounts.
The SEC claims that Kitts engaged in a six-year scheme to steal money from client accounts by forging client signatures on withdrawal requests from variable annuities, forging client signatures to wire funds from client brokerage accounts, and misleading clients into withdrawing funds to make fake tax payments. Kitts continued this practice until 2017 when a client questioned her about the dwindling account balance.
Through 82 unauthorized withdrawals, Kitts allegedly stole more than $3 million from seven clients, and then tried to conceal her actions through falsified account statements and other documentation. Kitts used the money she stole for personal expenses, including paying for vacations and several luxury vehicles.
Kitts, who spent more than 13 years with Royal Alliance Associates, was fired for allegedly converting client funds. She was suspended by FINRA and later barred for failing to request termination of her suspension within three months of receiving the notice.
During her 22-year career, Kitts was registered with ING Financial Partners, Forum Fund Services, PFPC Distributors, New England Securities, and Jackson National Financial Services, and held FINRA Series 6, 7, 24, 26, 63, and 66 licenses.
The SEC seeks permanent injunctions, civil penalties, and disgorgement plus prejudgment interest.
