Former Kingsbury Capital Broker, Michael J. Collins, Suspended And Fined By FINRA For Allegedly Engaging In Unapproved Private Securities Transactions
Michael Jason Collins (CRD # 2915653) was a Financial Advisor at Kingsbury Capital, Inc. in Evanston, IL. Michael Collins has been in the securities industry since 1999 and previously worked at Robert W. Baird & Co., Morgan Stanley and Citigroup Global Markets.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on November 18, 2019, Michael Collins was suspended by FINRA for 5 months and fined $10,000 for allegedly participating in private securities transactions without providing prior notice to his firm. Specifically, it is alleged that Michael Collins “solicited individuals to invest in membership units of a limited liability company organized to operate a new restaurant in Chicago, Illinois.”
For a copy of the FINRA sanction, click https://www.finra.org/sites/default/files/fda_documents/2017056104801%20Michael%20Jason%20Collins%20CRD%20291563%20AWC%20va.pdf.
This practice is known in the industry as selling away. 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
In addition, Michael Collins was the subject of a March 2018 customer complaint alleging, “excessive fees were charged to client’s accounts.”
For a copy of Michael Collins’s CRD, click https://brokercheck.finra.org/individual/summary/2915653#disclosuresSection.
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.
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