- October 20, 2023
- Kahn Brothers
Thomas Graham Kahn (CRD#: 263171) is a registered broker and investment advisor at Kahn Brothers LLC., in New York, NY.
Thomas Kahn entered the securities industry in 1969. He previously worked for Lehman Brothers Kuhn Loeb Incorporated, and Abraham & Co. Inc.
Allegations of Misconduct
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in June 2022, the United States Securities and Exchange Commission (SEC) deemed it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Sections 203(e), 203(f), and 203(k) of the Investment Advisers Act of 1940 (“Advisers Act”) against Kahn Brothers Advisors, LLC (“KIA”) and Thomas Kahn (“Kahn”) (collectively, “Respondents”). The Commissions find that this matter primarily concerns misstatements and omissions by registered investment adviser KIA and its principal owner and president, Kahn, to KIA advisory clients and prospective clients relating to brokerage services provided by KIA’s affiliated broker-dealer, Kahn Brothers LLC (“KBD”). Specifically, KIA and Kahn (a) failed to fully and fairly disclose to advisory clients all material facts related to the conflict that arose from KIA’s use of an affiliated broker-dealer to execute client transactions; and (b) made misleading statements to clients and prospective clients that KIA would aggregate client transactions to reduce commissions. KIA and Kahn also failed to seek best execution for advisory clients, failed to conduct a best execution review of KBD, and failed to adopt and implement written policies and procedures reasonably designed to prevent violation of the Advisers Act and its rules. According to KIA’s policies and procedures, Kahn was responsible for all aspects of KIA’s compliance program and its implementation, as well as the firm’s disclosure obligations. As a result of his conduct, Kahn willfully violated Section 206(2) of the Advisers Act, and caused the firm’s willful violations of Section 206(4) of the Advisers Act and Rule 206(4)-7 thereunder.
The following sanctions were ordered:
- Cease and desist
- Civil and Administrative Penalty(ies)/Fine(s)
- Monetary Penalty other than Fined
- Prejudgment interest
For a copy of Thomas Kahn’s FINRA BrokerCheck, click here.
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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.
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