What You Must 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 crew allegedly impersonated shoppers in cellphone calls to their former agency to execute transactions within the shoppers’ accounts.
- The SEC is in search of 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 stated in a criticism, 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 criticism or information launch about it on Thursday.
However the agency was recognized by the Monetary Business Regulatory Authority as Waddell & Reed, the place the daddy was registered since 2013 and the son since 2018, in line with their reviews 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 criticism additionally alleged that, following their terminations, to steer a few of their shoppers to affix them at their new agency, the Kanes falsely represented to shoppers that they left their former agency voluntarily.
The crew moved to Cambridge Funding Analysis and are nonetheless affiliated with the agency, in line with BrokerCheck.