Former LPL Financial Broker Kevin McCallum Facing Over $4.8M in FINRA Arbitration Claims

Glacier Point Advisors Managing Partner is Ordered to Pay Customers More Than $1.2M in Restitution 

Kevin Marshall McCallum, a former LPL Financial stockbroker and the Managing Partner of Glacier Point Advisors has been suspended by the Financial Industry Regulatory Authority (FINRA) for a year.

McCallum is ordered to pay over $1.2M, along with interest, in deferred restitution to customers. He is currently facing more than $4.8M in FINRA arbitration claims from investors for their losses. 

FINRA says that McCallum made unsuitable recommendations to 12 customers, including four older investors aged 60 and older, and seven who were invested in retirement funds. Because of this, customers who had moderate- or low-risk tolerance levels ended up becoming overconcentrated in a very risky publicly-traded business development company (BDC) that showed signs of financial woes. 

Based on other online sources, this company appears to be Medley Capital Corp., which filed for bankruptcy protection earlier this year. 

FINRA said that customers ended up concentrating somewhere between 17% to over 60% of their liquid net worth in the BDC. Meanwhile, McCallum and his member firm at the time earned over $37K in commissions, with over $14K going to him. 

Without denying or admitting to the self-regulatory organization’s findings, McCallum consented to both the sanctions and the entry of findings. Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is investigating investor losses by former customers of ex-LPL Financial broker Kevin McCallum. If you are one of these investors, call (800) 259-9010 today.

Ex-LPL Financial Broker Kevin McCallum’s BrokerCheck Notes Six Disclosures 

There are currently six disclosures on Kevin McCallum’s BrokerCheck record accusing the suspended broker of various types of securities fraud and negligence including:

• July 2021: The yearlong suspension by FINRA.
• February 2021: Unsuitable recommendations and overconcentration involving Medley Capital.
• December 2020: Four customers allege that their investment in a non-diversified, closed-end management company was unsuitable for them given their investing goals. They are seeking $4.8M in damages.
• October 2020: This investor is claiming losses from unsuitable recommendations and concentration in Medley Capital.
• November 2019: This claimant contends that 50% of their account was unsuitably concentrated in Medley Capital.
• April 2019: A $500K settlement was reached with these claimants who say that they suffered losses due to risky, unsuitable investments and the unauthorized use of margin.

Medley Capital, which is a Medley Management Inc. subsidiary, reported over $5.4M in assets and more than $141M in debt in its bankruptcy filing in March 2021. Like all business development companies, it should never have been recommended to inexperienced investors with conservative risk tolerance levels to begin with.

Kevin McCallum has worked for 26 years in the industry. Before Glacier Point Advisors, he was a registered investment advisor for Cadence Investment Services and an LPL Financial broker from 2012 to 2017. He has also been a registered representative with NBC Securities, Colonial Brokerage, and AmSouth Investment Services.

Knowledgeable FINRA Arbitration Lawyers Fighting For Investors 

Over the years, SSEK Law Firm has filed FINRA arbitration claims against LPL Financial over the misconduct and negligence of its brokers. We have recovered many millions of dollars on our clients’ behalf. Contact us today at (800) 259-9010 so that we can help you determine whether you have grounds for a case.