What You Have to Know
- A father and son who served as advisors and brokers for Waddell & Reed and Cambridge have been charged with fraud by the SEC.
- The workforce allegedly impersonated purchasers in telephone calls to their former agency to execute transactions within the purchasers’ accounts.
- The SEC is searching for everlasting injunctions and civil penalties in opposition to the pair.
A father and son who have been fired from Waddell & Reed in 2021 have been charged with fraud by the Securities and Alternate Fee.
Kevin John Kane, 66, and Sean Michael Kane, 36, each of York, Pennsylvania, have been terminated for trigger from the dually registered advisor/broker-dealer on Feb. 23, 2021, the SEC mentioned in a grievance, filed Wednesday in U.S. District Court docket for the Center District of Pennsylvania.
The agency wasn’t recognized by the SEC, both in its grievance or information launch about it on Thursday.
However the agency was recognized by the Monetary Trade Regulatory Authority as Waddell & Reed, the place the daddy was registered since 2013 and the son since 2018, in keeping with their stories on FINRA’s BrokerCheck web site.
LPL Monetary accomplished a purchase order of Waddell & Reed’s wealth administration enterprise from Macquarie Administration Holdings for roughly $300 million in April 2021.
The SEC’s grievance additionally alleged that, following their terminations, to influence a few of their purchasers to affix them at their new agency, the Kanes falsely represented to purchasers that they left their former agency voluntarily.
The workforce moved to Cambridge Funding Analysis and are nonetheless affiliated with the agency, in keeping with BrokerCheck.
