- July 13, 2023
- Financial Industry Regulatory Authority
Kale Young (CRD#: 2270954) is a previously registered Broker and previously registered Investment Adviser.
He entered the securities industry in 1993 and previously worked for Cuso Financial Services, LP; LPL Financial, LLC; Zions Direct, Inc.; Bancwest Investment Services, Inc.; Countrywide Investment Services, Inc.; Citicorp Investment Services; IFMG Securities, Inc.; FIMCO Securities Corporation; and Fortis Investors, Inc.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in June 2023, FINRA sanctioned Kale Young with a civil and administrative fine of $5,000, and a suspension from all capacities for 20 business days beginning July 3, 2023 and ending July 31, 2023. The FINRA sanction states, “Without admitting or denying the findings, Young consented to the sanctions and to the entry of findings that he falsified the signatures of three customers of his member firm on nineteen firm forms with the customers’ permission. The findings stated that Young re-used one of the customer’s previously obtained genuine signatures on three account transfer forms. Young also re-used that customer’s and another customer’s previously obtained genuine signatures on fifteen mutual fund replacement forms. Further, Young affixed a copy of a third customer’s signature to a life insurance product acknowledgement form. In each instance, the customers did not sign the documents but authorized Young to affix or re-use their signatures. Young also falsely stated on an annual compliance questionnaire that he had not signed or affixed any other person’s signature on a document. The firm used eighteen of the falsified documents to authorize and record the sale, transfer, or disbursement of cash or securities from the customers’ accounts. As a result of this conduct, Young caused his firm to maintain inaccurate books and records.”
For a copy of the FINRA sanction, click here.
In addition, Kale Young has been the subject of two disclosures, including the following:
- March 2020 — “Violation of Firm Document Signature Policy for re-using customer signatures on account documents.” Kale Young was discharged by LPL Financial, LLC.
- December 2019 — A financial compromise was satisfied/released.
For a copy of Kale Young’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
FINRA regulations require that a customer’s written authorization is required before a broker-dealer can carry out transactions in the customer’s account. In addition, the broker-dealer’s member firm needs to approve the broker-dealer’s authorization. These measures are intended to protect the customer. Discretionary trading allows the broker-dealer to unilaterally decide to buy or sell securities at any price and not have to check with the client first. Exercising discretion without authorization can be costly to investors, and broker-dealers and their member firms, too.
In addition, to the extent a Financial Advisor converts client assets during the course and scope of his employment and/or registration with the brokerage firm, or the broker keeps inaccurate records related to customer accounts, that brokerage firm may be held liable for any attendant losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at email@example.com.