fbpx

Financial Adviser Kenneth James New Discloses Two Customer Complaints

Kenneth James New (CRD#: 2836918)M is a dually registered Broker and Investment Adviser at Center Street Securities, Inc. in Merritt Island, FL.

Broker’s Background

He entered the securities industry in 1997 and previously worked for Pinnacle Financial Wealth Management, LLC; Brookstone Capital Management, LLC; Center Street Securities, Inc.; USA Financial Securities, Corp.; Ameritas Investment Corp.; Signator Investors, Inc.; and John Hancock Mutual Life Insurance Company.

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 2022, a customer dispute was opened against Kenneth James New. The allegation states, “Client alleges the registered representative recommended unsuitable investments.” The customer dispute is pending, and damages of $393,000 are requested.

In addition, Kenneth James New has been the subject of another customer complaint and regulatory disclosure, including the following:

  • June 2022 — “Client alleges registered representative recommended an unsuitable investment.” Damages of $50,000 are sought, and the customer dispute is pending.
  • February 2013 — “DISTRIBUTED GIFT CARDS HAVING A VALUE OVER $25.00 IN VIOLATION OF FL INSURANCE REGULATIONS.” The Florida Department of Financial Services issued a cease and desist order, a civil and administrative penalty/fine of $3,000, and sanctioned Kenneth James New with probation for one year.

For a copy of Kenneth James New’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisers 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 advisers’ 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.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an adviser to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Quantitative suitability requires a brokerage firm or financial adviser with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial adviser must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

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 mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]