Former First Allied Securities Broker David Kennon Faces Unsuitability Allegations

Sarasota, Florida Investment Advisor Still Operates Kennon Financial

David Robert Kennon, a former First Allied Securities stockbroker, has three customer disputes listed on his BrokerCheck in which the claimants have accused him of making unsuitable investment recommendations. 

Kennon, who is no longer a registered broker, remains a registered investment advisor in Sarasota, Florida where he runs Kennon Financial. Our Florida investment fraud lawyers are investigating claims of losses by customers of David Kennon. 

Contact us at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today. 

Ex-First Allied Securities Broker Accused of Unsuitability and Securities Fraud

Many of David Kennon’s customers have suffered significant losses during this time at First Allied Securities. Here are some of the customer disputes involving the ex-broker: 

  • July 2021: This claimant is alleging unsuitability, breach of contract, fraud, and due diligence failures. They are requesting $100K in damages from First Allied Securities.
  • July 2021: This investor is requesting $250K in damages from First Allied Securities over alleged overconcentration, unsuitability, negligence, failure to supervise, and breach of contract. The losses appear to have been sustained in investments connected to the hospitality and hotel industries. 
  • April 2018: A $24K settlement was reached with this customer, who accused Kennon of unsuitably recommending risky and speculative investments.

David Kennon was a registered broker with First Allied Securities from 2012 to 2019. Other firms where he used to be a stockbroker and/or investment adviser include Woodbury Financial Services and AXA Advisors. He has worked for 20 years in the industry. 

Filing a FINRA Arbitration Claims Against First Allied Securities or Another Broker-Dealer 

When a customer wishes to pursue financial recovery, their legal recourse is to file an arbitration claim through the Financial Industry Regulatory Authority (FINRA). 

Often, investors aren’t aware that the arbitration system is what they will need to go through and not the courts to seek redress. They may not even realize that they likely signed documents in which these “arbitration only” clauses were buried when agreeing to work with a brokerage firm. 

Sometimes the broker is named in the FINRA arbitration claim. Often, it will be their broker-dealer. Even if it was the broker who engaged in misconduct or negligence, their firm can be held accountable by the customer(s) who suffered the resulting losses. 

Shepherd Smith Edwards and Kantas managing partner and securities fraud attorney, Kirk Smith discusses when a securities firm is liable for its brokers’ actions:

A brokerage firm must properly supervise their financial advisors and customer accounts, as well as identify, prevent, or stop incidents of misappropriation and other wrongful actions. 

Going after a broker-dealer for damages is not the type of securities claim that you want to pursue without seasoned broker-dealer negligence lawyers by your side fighting for you and protecting your rights. 

Recover Unsuitability Losses With Experienced Securities Fraud Lawyers

The allegation of unsuitability usually involves a financial advisor having recommended a financial product, trade, or investment strategy that was not suitable for a customer. This can be due to their investing profile, risk tolerance level, financial goals, and other criteria. 

FINRA Rule 2111 mandates that brokers only make recommendations if they have reasonable grounds for thinking that they meet this suitable requirement.

Call SSEK Law Firm today so that we can help you explore your legal options. In Florida, call (813) 560-2992. Nationwide, call SSEK Law Firm at (800) 259-9010.

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