Oakes & Fosher is currently investigating allegations levied against former securities broker, Leonard Kinsman. According to his publicly available FINRA BrokerCheck report, Leonard Kinsman has been the subject of multiple complaints over the course of the his career. These complaints were filed by, or on behalf of, customers that believe they were financially harmed by him acting as their securities broker.

During his career, Leonard Kinsman operated primarily out of New York. He spent a total of twenty-two years working in the securities industry with eight different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Argent Securities (1997)
  • Meyers Pollock Robbins (1997)
  • Royal Hutton Securities Corp. (1997-1999)
  • Citicorp Investment Services (1999-2007)
  • Citigroup Global Markets (2007-2008)
  • Wells Fargo Advisors (2008-2011)
  • Merrill Lynch (2011-2014)
  • Wells Fargo Advisors Financial Network (2014-2019)

The Allegations

  • In March 2008, Leonard Kinsman received a complaint regarding the unsuitability of an Auction Rate Security. This complaint was filed before the widespread illiquidity of the ARS market. This case was settled for $200,626 in damages.
  • In May 2016, a customer alleged that Kinsman had recommended unsuitable investments and made material misrepresentations about said investments.  This case was settled for $50,000 in damages.
  • In October 2016, a customer alleged that Kinsman had made material misrepresentations about an investment, namely that their investment was principal protected.  This case was settled for $24,000 in damages.
  • In April 2019, a customer alleged that Kinsman made unsuitable investment recommendations and forged and falsified documents.  This case was settled for $995,000 in damages.
  • In May 2020, Kinsman was officially barred by FINRA for allegedly failing to appear for on-the-record testimony in connection with its investigation into the events resulting in Kinsman’s termination from his member firm.  The findings stated that the firm discharged for alleged unprofessional conduct.  Because of these findings, Kinsman was barred indefinitely from serving as a securities broker.

What Does This Mean?

Securities brokers have a duty to their customers to always act in their best financial interests. This is their duty as a fiduciary. This means that brokers can only recommend investments that their customers are actually suited for. Brokers like Jeffrey Labelle can determine if a particular investment is suitable for their customer by looking at various different factors provided to them by the customer. This includes the customer’s investment objectives, financial situation, liquidity needs, and risk tolerance. Brokers who invest their customers contrary to these needs have either done so in a fraudulent manner, placing their own financial interests ahead of their customer’s, or in a negligent one. Regardless if the broker’s intent was fraudulent or negligent, managing a customer’s account unsuitably disqualifies them from the ability to perform their duties in the required manner.

How Can We Help?

Securities brokers not only have a fiduciary duty, but a legal obligation to act in the best interests of their customers. When investors experience losses that are caused by broker negligence or misconduct, they may 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 Leonard Kinsman, please contact us today for a free and private consultation.