A disciplinary action taken by the Financial Industry Regulatory Authority against former Pasadena, California broker and investment advisor Dennis Mehringer...Read More
Regulators Suspend Financial Advisor Kevin Jedlicka Following Termination From Chapin Davis
On January 2, 2018, it was announced that the Financial Industry Regulatory Authority (FINRA) suspended financial advisor Kevin Jedlicka (CRD#2339602) for six months. This comes after Jedlicka was terminated from Chapin Davis on or around January 22, 2016, for “unsuitable transactions and excessively trading customer accounts.” Jedlicka was last employed by Capital Portfolio Management, Inc. in Maryland.
According to the FINRA release, between January 30, 2015 and January 22, 2016 Jedlicka “engaged in a pattern of unsuitable short-term trading of Class A mutual fund shares and Unit Investment Trusts (UITs) in customer accounts.” FINRA alleged that Jedlicka violated FINRA Rules 2111 and 2010.
FINRA Rule 2111 is the “suitability” rule, which states that “an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer.” FINRA Rule 2010 states “[a] member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.”
According to FINRA, four of Jedlicka’s customers lost $206,306 due to his unsuitable trading. Jedlicka repeatedly recommended his clients purchase Class A mutual fund shares and UITs and then sell the securities in the near-term. The mutual funds recommended had large front-end sales commissions and were meant to be held for the long term. Most of the UITs that were recommended had maturities of at least 24 months. Despite the long-term nature of the investments, the average holding period for the mutual funds and UITs was only 106 days.
Jedlicka was also terminated from Wells Fargo in 2010 for “issues involving unfunded variable annuity trade.” He currently has no customer complaints on his regulatory record.
If you have lost money due to the unsuitable trading of a financial advisor, call us at 888-976-6111 for a free consultation.