The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Kyle Harrington. According to his publicly available FINRA BrokerCheck report, Kyle Harrington has been the subject of multiple customer disputes.

Kyle Harrington was a New York-based securities broker. He worked in the securities industry for twenty years. During his career, he was registered with fifteen different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Merrill Lynch (1993-1994, 1997-1998)
  • Putnam, Lovell & Thornton Inc. (1994-1995)
  • Goldman, Sachs & Co. (1996)
  • Morgan Stanley (1997)
  • BancAmerica Robertson Stephens (1998-1999)
  • CIBC World Markets Corp. (1999-2002)
  • Prudential Securities Incorporated (2002-2003)
  • Wachovia Securities (2003-2005)
  • Deutsche Bank Securities Inc. (2005-2007)
  • Robert B. Ausdal & Co. (2007-2008)
  • First Allied Securities (2008-2009)
  • Matrix Capital Group (2009-2011)
  • Bannockburn Partners (2012)
  • National Securities Corporation (2012-2016)
  • Aurora Capital (2016-2018)

The Allegations

  • In December 2002, a customer alleged that Kyle Harrington executed unauthorized trades and charged them excessive commissions. This case was settled for $25,000 in damages.
  • In May 2013, a customer alleged that Kyle Harrington made material misrepresentations and omissions of fact. This case was settled for $15,000 in damages.
  • In October 2015, a customer alleged that Kyle Harrington made negligent misrepresentations and breached his fiduciary duty. This case went to arbitration where the customer was awarded $105,000 in damages.
  • In July 2016, customers alleged that Kyle Harrington recommended illiquid, speculative, and high-commission investments, excessively traded their account, executed unauthorized trades, recommended unsuitable investments, made material misrepresentations, and churned their account. This case was settled for $20,092 in damages.
  • In November 2016, Kyle Harrington was discharged from his position at National Securities Corporation following allegations of converting customer funds.
  • In January 2017, a customer alleged that Kyle Harrington engaged in common law fraud, made material misrepresentations, recommended unsuitable investments, excessively traded their account, over-concentrated their account, breached his fiduciary duty, breached contract, managed their account negligently, and engaged in forgery. This case was settled for $85,000 in damages.
  • In June 2017, Kyle Harrington was officially sanctioned by FINRA. The findings in the matter state that he converted customer funds by intentionally, and without authorization, taking and exercising ownership over $19,874 that belonged to one of his customers. Harrington also allegedly took part in a series of private securities transactions without providing notice to his member firm. He also allegedly made inaccurate statements about the purpose of payments received from the individuals investing in these private securities transactions. Due to these allegations, he was fined $10,453, forced to pay $190,974 in disgorgement, $105,000 in restitution, and he was barred from acting as a securities broker in any fashion.

What Does This Mean?

Converting a customer’s funds is one of the most blatant abuses of power committed by securities brokers. The only way that the professional relationship between brokers and investors can even exist is through trust. Investors need to trust the individual they are leaving their hard earned money with. When investors hear stories of brokers converting their customers’ funds, it makes them worry that something similar may happen to them. This erodes the trust between brokers and investors, and possibly works toward the downfall of the broker/investor relationship altogether.

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 in this fashion may actually be entitled to damages. Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Kyle Harrington, 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.