The law firm of Oakes & Fosher is currently investigating the alleged misconduct of securities broker Kevin Meadows. According to his publicly available FINRA BrokerCheck report, Kevin Meadows had been the subject of multiple customer disputes over the course of his career.
Kevin Meadows is a Georgia-based securities broker who had worked in the securities industry for twenty-two years. During his career, he had been registered with seven different securities firms.
His Registrations
- C. Bradford & Co. (1997-2000)
- UBS Financial Services (2000-2004)
- Raymond James Financial Services (2004-2006)
- First Allied Securities (2006-2013)
- Cape Securities (2013-2017)
- Lombard Securities (2018-2018)
- IBN Financial Services (2018-2020)
The Allegations
- In March 2006, a customer alleged that Meadows had engaged in unauthorized trading and churning, on one occasion totaling sixteen trades in one month that the customer was unaware of. This case was settled for $50,000 in damages.
- In January 2020, Meadows was officially sanctioned by FINRA for allegedly excessively and unsuitably traded a senior customer’s accounts that resulted in a loss of $39,671. The trades were determined allegedly unsuitable given the customer’s financial circumstances and investment objectives. As a result of these findings, Kevin Meadows was suspended from acting as a securities broker in all capacities for a period of three months.
What Is Churning?
Securities brokers receive compensation through either charging a commission on every transaction, or by charging an annual fee to customers for managing the brokerage account. Charging a commission on every trade can lead a broker to buy or sell more frequently in order to earn more compensation. . This method of compensation can lead to a fraudulent method of trading known as churning, where securities brokers trade an investor’s account excessively with the intent of increasing the amount of compensation they receive through commission. Churning can be incredibly harmful to investors as it prevents their principal from growing as expected, can result in a securities broker making unsuitable trades they might not otherwise, and it causes the customer to incur the highly unnecessary charges paid to the brokers as their commissions. These charges can very easily rack up and significantly drain an investor’s principal.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money due to this fraud or negligence may actually be entitled to recover losses in the account of principal and sometimes damages representing what the account would have earned had it been handled properly.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Kevin Meadows please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.
