Stamford, Connecticut-based broker and investment adviser Christopher Phillips (CRD# 4761544) has received a pending investor complaint alleging his actions resulted...Read More
FINRA Suspends NYLife Broker David Kendrick: $30,000 Fine
Former Shreveport, Louisiana broker and investment adviser David Kendrick (CRD# 4384666) has been sanctioned by the Financial Industry Regulatory Authority over allegations he was involved in an undisclosed outside business activity. Formerly registered with NYLife Securities Securities, Kendrick was issued an 18-month suspension and a fine of $30,000.
According to a Letter of Acceptance, Waiver, and Consent (No. 2018058397101) dated November 2019, David Kendrick was associated with NYLife Securities as a general securities representatives from May 2002 until his resignation in May 2018, which the firm attributed to allegations he did not disclose his “participation in an investment club and other unapproved outside business activities.” FINRA’s findings go on to state that between November 2011 and January 2017, he, alongside eight other persons, two of whom were his customers at NYLife Securities, created an investment club. He was registered as its officer and manager, and executed its operating agreement, under which he “was designated as a manager and agent and vested with the exclusive authority to manage and control the affairs” of the club. He also “received an irrevocable power of attorney” under that operating agreement. After he was appointed those roles, according to FINRA, he oversaw the club’s “financial and administrative affairs.” These included the selection, introduction, and facilitation of its investments; the issuing of checks and the authorization of wire transfers; the coordination with and providing of authorization to the club’s accountant; and communication with other members, according to FINRA, which states he additionally organized and led meetings related to the club at his member firm’s branch office. However, FINRA states, in spite of firm rules requiring that representatives request in writing and receive approval before engaging in outside business activities, Kendrick did not disclose his involvement in the club to his member firm until he first requested its approval in August 2015; according to FINRA, he did not at that time inform NYLife that his activities relating to the club began in 2011, or that “he had personally invested and facilitated the investment of others” through the club. FINRA states that the firm did not approve the club as an outside business activity, but Kendrick continued his involvement with it until around January 2017, when the firm directed him to remove himself from its registration.
FINRA’s findings go on to state that between June 2010 and May 2018, in contravention of firm policies, David Kendrick “participated in nine private securities transactions without providing prior written notice to or receiving approval from” NYLife Securities. These alleged transactions involved the solicitation, recommendation, and facilitation of $290,000 in investments in three private placements through two investment clubs. FINRA additionally states that Kendrick allegedly personally invested $106,297 in six separate private placements. As a result of the foregoing alleged conduct, Kendrick was suspended from association with FINRA member firms for a period of 18 months. He was also issued a fine of $30,000.
David Kendrick is currently not registered with any FINRA member firm. His previous registrations include NYLife Securities, Lincoln Financial Advisors Corporation, and the Lincoln National Life Insurance Company. He has passed four securities industry qualifying examinations and his BrokerCheck report currently lists no state securities licenses. (Information current as of May 6, 2020.)