Newport Coast Securities Fined by FINRA Relating to Elder Financial Fraud
FINRA has fined Newport Coast Securities $35,000.00. Of the fine, $5,000.00 is also owed by Newport’s compliance manager, Kristopher Charles Kessler. FINRA has also suspended Kessler from being associated with any FINRA brokerage firm for 10 business days. FINRA found that Newport Coast Securities and Kessler failed to properly supervise a former Newport stockbroker, Gregory Allen Baldwin.
Two Executives Involved in Newport Coast Securities Case
According to FINRA, Baldwin transferred securities from an elderly customer’s account to an account that he controlled without the customer’s approval. FINRA found that Kessler approved the opening of the account into which the securities were transferred, and reviewed and approved the actual transfer of the customer’s securities into the account that Baldwin controlled.
Kessler approved the transaction despite the fact that Newport’s internal rules prohibited brokers from participating in private securities transactions. FINRA found that Kessler’s and Newport’s lack of supervision allowed Baldwin to enrich himself at the customer’s expense.
FINRA has been actively trying to address stockbroker misconduct and the practice of committing elder abuse and elder fraud against elderly investors.
We previously reported on Newport Coast Securities in 2014 for securities issued related to churning – an investment practice done by stockbrokers designed to create additional commissions and fees benefitting the investment advisor.
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