- May 27, 2019
- Huntington Investment Company
William Kielczewski was a Financial Advisor at the Huntington Investment Company in Toledo, Ohio. William Kielczewski entered the securities industry in 1999 and previously worked at Fifth Third Securities.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in April 2017, the Huntington Investment Company terminated William Kielczewski after the “firm concluded that Registered Representative misrepresented activity relating to an OBA, and engaged in private securities transactions without firm approval…”
The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
Following the termination, FINRA commenced an investigation into the alleged sales practice misconduct and determined that William Kielczewski made false representations to FINRA in connection the investigation. In May 2019, FINRA filed its enforcement complaint against William Kielczewski, alleging the following:
“Kielczewski was named a respondent in a FINRA complaint alleging that he falsely and repeatedly represented to his member firm that he was merely a passive investor in a hedge fund when, in fact, he was actively involved with the fund, promoting it to potential investors. The complaint alleges that Kielczewski continued to claim in two compliance attestations he completed, as well as in email correspondence exchanged with his then-supervisor, that he had only a passive role in the fund and that he did not solicit investments for the fund. Those representations were false. Kielczewski helped to facilitate customer investments in the fund by assisting in the completion of wire transfers in order to fund their investments, reviewed and made revisions to the fund’s pitch book and quarterly portfolio reports, and occasionally suggested to a customer certain securities to purchase for the fund. Furthermore, Kielczewski’s tax returns show that his involvement with the fund was more than passive ownership.”
A copy of the regulatory complaint can be accessed by clicking https://www.finra.org/sites/default/files/fda_documents/2017054405401%20William%20Joseph%20Kielczewski%20CRD%204034356%20Complainant%20jm.pdf
For a copy of William Kielczewski’s CRD, click https://brokercheck.finra.org/individual/summary/4034356
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment 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 firstname.lastname@example.org.