Leonard Charles Kinsman, (also known as Lenny Charles Kinsman) a previously registered broker and previously registered investment adviser in Staten Island, New York, was the subject of a regulatory action initiated against him by the Financial Industry Regulatory Authority (FINRA) leading to his bar from acting as an investment adviser. This regulatory action was based on the allegation that he failed to comply with the request to testify as requested by FINRA, according to an investigation by attorney Alan Rosca.
Securities attorney Alan Rosca of the Rosca Scarlato LLC law firm is investigating conduct related to the bar of Leonard Kinsman by FINRA on the allegation of the previously registered investment adviser refusing to comply with FINRA’s request for him to testify.
Kinsman was last in the employment of Wells Fargo Advisors Financial Network, LLC, a FINRA member firm, between June 2014 and July 2019. He was also in the employment of this firm when he allegedly carried out the activities leading to the regulatory sanction.
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Kinsman was Barred for Refusing to Appear for On-the Record Testimony
The Rosca Scarlato attorneys reviewed publicly available information and found that Leonard Charles Kinsman was barred by FINRA in May, 2020 according to the reports on his FINRA Brokercheck page.
The regulatory action was resolved by Kinsman, without admitting or denying the findings and allegations, consenting to an Acceptance, Waiver and Consent (AWC) order which imposed the sanction to be barred indefinitely in all capacities from the date mentioned above.
FINRA instituted the regulatory action on the allegation that the previously registered broker violated FINRA Rule 8210 and 2010 by refusing to appear for an on-the-record testimony in connection with FINRA’s investigation into the events leading to Leonard Kinsman’s termination from his firm and other sales practice complaints according to the reports on the brokercheck page.
As reported in the AWC, Wells Fargo filed a Form U5, notice of termination form, against Leonard Charles, notifying the authority of the termination of his employment on the allegation of unprofessional conduct. This led to the investigative action by FINRA requesting his presence for the testimony.
Leonard Kinsman allegedly received the notice for the testimony appearance and stated his refusal to appear at any time as contained in the AWC. FINRA Rule 8210(a)(1) authorizes FINRA to request persons subject to its jurisdiction to appear at a location to testify under oath in respect of any matter being investigated and such person is expected to comply.
Kinsman Was Involved In Customer Disputes
According to the brokercheck report, the previously registered broker was involved in a customer dispute filed in April 2019. The customer dispute which was settled for $995,000 was based on the allegation that between the period of 2012 and 2017, the barred broker recommended unsuitable investments to the clients and engaged in forgery and falsification of business records.
In another customer dispute, the client alleged that they were misrepresented to. The client alleged that the previously registered investment adviser Leonard Kinsman told them that their investment between November 2014 and October 2016 was principal protected, and that they would be guaranteed an annual return of at least 5% and no fees associated with it, which was not the case. The dispute was settled in February 2017 to the tune of $24,000.
Leonard Charles Kinsman was also involved in another customer dispute that settled in December 2008 for $200,626. The customer dispute was filed on the allegation of an auction rate security that was made prior to the widespread illiquidity in the market that occurred in February 2008.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to Leonard Charles Kinsman’s bar on the allegation of refusal to appear for the On-the-record testimony requested by FINRA.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to Leonard Charles Kinsman’s bar on the allegation of refusal to appear for the On-the-record testimony requested by FINRA, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.