- September 20, 2023
- Merrill Lynch
Jeffrey Kirkpatrick (CRD#: 3069597) was a previously registered broker, and investment adviser.
Kirkpatrick was first registered with FINRA in 1998. He previously worked at Merrill Lunch, Pierce, Fenner & Smith Incorporated; H&R Block Financial Advisors; and Sterne Agee Financial Services, Inc; LPL Financial LLC; Hamilton Investment Counsel, LLC; and Transitus Wealth Partners LLC.
Current and Past Allegations of Conduct Leading to Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in September 2023, Jeffrey Kirkpatrick consented to the following findings by FINRA: On July 14, 2020, Kirkpatrick electronically signed a wire transfer request form at the request of his business partner (who was a co-representative on the account at issue), and submitted it to LPL to effectuate his customers’ requested transfer of $1 million from their account to the account of a third-party entity. Kirkpatrick falsely attested on the form that he had verbally confirmed “the amount, timing and payee instructions with the customer,” when he in fact had not. As a result, Kirkpatrick violated FINRA Rule 2010, and he separately violated FINRA Rules 4511 and 2010, by causing LPL to maintain inaccurate books and records. Additionally, between December 2019 and June 2021, Kirkpatrick used his personal mobile phone to exchange text messages with his business partner about LPL business. Because LPL did not permit registered representatives to send or receive business-related text messages outside of the firm’s approved text messaging application, LPL did not preserve Kirkpatrick’s text messages as required by Section l 7(a) of the Securities Exchange Act of 1934 (the Exchange Act) and Rule l 7a-4(b)(4) thereunder. By causing LPL to maintain incomplete books and records, Kirkpatrick violated FINRA Rules 4511 and 2010. Consequently, Kirkpatrick consented to the imposition of the following sanctions:
- A four-month suspension from associating with any FINRA member in all capacities and
- A $10,000 fine.
For a copy of Jeffrey Kirkpatrick’s FINRA Letter of Acceptance, Waiver, and Consent, click here.
In addition, Jeffrey Kirkpatrick has been the subject of two other disclosures, which include the following:
- In June 2022, Kirkpatrick entered into a cease-and-desist order with the Securities and Exchange Commission (SEC) for willfully aiding and abetting, and causing the investment adviser of which he was chief compliance officer and principal, to violate Section 206(4) of the Investment Advisers Act of 1940 and Rule 206( 4 )-7 thereunder. The Commission found that Kirkpatrick knew or should have known that the investment adviser’s compliance program was inadequately implemented with respect to supervision of an investment adviser representative’s outside business activities, but that he did not make sufficient changes to the compliance program’s design and implementation. The SEC ordered Kirkpatrick to cease and desist from committing or causing any future violations of Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder; barred him from acting in “a supervisory or compliance capacity with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or national recognized statistical rating organization,” with the ability to reapply to do so after five years; and assessed a civil penalty of $15,000.
- November 1989—“ BAD CHECK. BOUNCED A $10.00 CHECK–A MISDEMEANOR OFFENSE.” Fined $60.
For a copy of Jeffrey Kirkpatrick’s SEC adviserinfo, 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, that brokerage firm may be held liable for any attendant losses.
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