FINRA bans ex-ML broker after record settlement with NH, fmr. Governor

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Charles Kenahan offering the 2017 commencement speech at the Portsmouth Abbey School in Rhode Island

Supply: Porstmouth Abbey College

A previous Boston-dependent Merrill Lynch broker, who was at the middle of two settlements totaling additional than $66 million about allegations which includes unauthorized and abnormal investing, has been barred by FINRA.

Charles Kenahan, who has labored in the money services market considering that 2002, was also completely barred by the New Hampshire point out securities regulator in December as part of a $26.25 million settlement with the condition and Craig Benson, the previous governor of New Hampshire and Cabletron co-founder.

The Fiscal Sector Regulatory Authority, or FINRA, commenced investigating the matter soon after acquiring a statement of claim in 2019 from a single set of Kenahan’s customers alleging product sales apply violations, in accordance to a letter of acceptance, waiver and consent that Kenahan signed on Jan. 15 and was posted on FINRA’s website on Monday.

Kenahan, who to begin with cooperated with the investigation, ceased executing so in January subsequent a request from FINRA seeking the creation of data and paperwork together with the continuation of his testimony. In the letter of acceptance, Kenahan also acknowledged that he acquired FINRA’s requests but refused to “create the details and documents asked for or seem for on-the-file testimony at any time,” in accordance to FINRA.

Benson’s settlement was the premier financial sanction in New Hampshire’s record and the 2nd greatest FINRA settlement in at the very least a ten years. The biggest settlement also concerned Kenahan and was manufactured by Merrill Lynch, when the agency compensated out $40 million to Robert Levine, who co-founded Cabletron Methods with Benson in the early 1980s. Prior to the settlement, Levine experienced filed a FINRA arbitration grievance against Merrill Lynch and Kenahan alleging he experienced sustained damages of much more than $100 million due to, amongst other factors, his accounts remaining relentlessly churned.

With Reporting by CNBC’s Scott Zamost and Scott Cohn

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