National investment loss lawyers KlaymanToskes continues investigating barred broker Christopher Kennedy (CRD# 4498061) of Western International Securities Inc.
According to a December 2024 SEC litigation release, Christopher Kennedy, formerly of Western International Securities Inc., was charged with securities fraud and violations of Regulation Best Interest (Reg BI). The SEC alleged that Kennedy recommended a short-term, high-volume trading strategy to 19 brokerage accounts without a reasonable basis, resulting in over $9 million in customer losses.
Additionally, Kennedy falsified account statements to “grossly” overstate the value of a customer’s account. He agreed to settle the charges by paying disgorgement of $958,134, prejudgment interest of $218,267, and a civil penalty of $958,134, for a total of $2.1 million.
Investors that suffered losses with broker Christopher Kennedy are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss potential recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Barred broker Christopher Booth Kennedy has been hit with a civil injunctive action by the SEC for securities laws violations that caused investors financial losses. The SEC has filed charges against Kennedy, previously of Western International Securities Inc., for fraudulent practices including documented false statements about trading strategies and falsified account statements to inflate account values. The SEC’s complaint alleges that Kennedy violated Regulation Best Interest (Reg BI) by implementing an unsuitable short-term, high-volume trading strategy across 19 retail customer accounts. This activity involved over $363 million in transactions, resulting in $9 million in customer losses. Kennedy has agreed to pay $2.1 million to resolve the charges, which include disgorgement, prejudgment interest, and civil penalties.
In addition to the SEC’s findings, FINRA determined that Kennedy churned and excessively traded four accounts belonging to six customers during his employment at Western International Securities. The trading activity averaged 102 trades per account monthly, resulting in net trading of $6.9 million per account—13 times the average account value. These accounts suffered $2.3 million in losses, with customers incurring $715,000 in total trading costs and margin interest, including $595,000 in commissions.
Western International Securities, headquartered in Pasadena, California, reportedly manages $2.7 billion in assets. The firm terminated Kennedy’s registration in August 2021 following allegations of unauthorized options trading and failure to adhere to discretionary options sales orders. Kennedy’s FINRA BrokerCheck report also discloses that he was previously affiliated with Spartan Capital Securities and Financial West Group between 2009 and 2021.
As an investor, there are a few signs that you should look out for if you believe you may have a claim against your financial advisor. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you suffered losses with broker Christopher Kennedy, or have concerns regarding your investment portfolio at Western International Securities Inc., or with any other financial advisor or firm, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.