Former Baton Rouge, Louisiana-based LPL Financial broker Patrick Coogan (CRD# 4576580) has been barred by the Financial Industry Regulatory Authority...Read More
Kyle Harrington: Aurora Capital Advisor Barred Over Conversion Allegations
A disciplinary action taken by the Financial Industry Regulatory Authority against former Bridgehampton, New York broker and investment advisor Kyle Harrington (CRD#) barred him over allegations he engaged in private securities transactions and converted customer funds. A former representative of Aurora Capital, Harrington was barred from acting as a broker or otherwise associating with a broker-dealer firm.
According to a FINRA decision () dated November 2018, Kyle Harrington converted more than $19,874.64 in a customer’s funds. He also allegedly participated in private securities transactions constituting the sale of more than 300,000 shares of restricted stock, which FINRA states he “purportedly received as compensation from a company,” for a sum of about $276,000. He allegedly did not provide his member firm with written advance notice of the transactions, and that he later “lied to his firm when he mischaracterized the purpose of payments received into his bank accounts,” allegedly characterizing three payments an individual made to him for the stock as “vacation-rental-by-owner (VRBO) income.” He also allegedly erroneously described a $100,000 payment he received from that same individual as payment from a former broker-dealer employer, and “knowingly caused at least two falsified VRBO contracts to be sent to his firm” with the aim of disguising the nature of the funds paid to him in his alleged private securities transactions.
FINRA’s findings go on to state that when he came under FINRA’s investigation, he “continued to actively conceal his misconduct with the knowing assistance of his assistant,” who at his instruction or with his knowledge and consent made alterations to bank statements requested by the regulator. The alleged alterations were intended “to conceal the originator of a payment Harrington received for the stock.” He also allegedly “falsely and repeatedly” insisted to FINRA that the “fake VRBO agreements he had created were authentic,” and submitted a response to FINRA that erroneously stated “he was entitled to the approximately $20,000 he took from the customer, as payment for investment advisory services.”
As a result of the foregoing alleged conduct, Kyle Harrington was barred from associating with any FINRA member in all capacities. He was also ordered to pay disgorgement of $190,974.64 and restitution of $105,000.
Kyle Harrington’s disclosure records also list four customer complaints against him. One such complaint, filed in 2015, alleged that as a representative of National Securities Corporation he committed common law fraud, negligently misrepresented material facts, breached his fiduciary duty, and violated the California Corporations code; the complaint resulted in an award to the claimant of $105,000. Another complaint, filed in 2017, alleged that as a representative of Matrix Capital, Bannockburn Partners, and National Securities, he engaged in common law fraud, misrepresented material facts, excessively traded securities, churned investments, converted funds, committed forgery, breached contract, and breached his fiduciary duty; the complaint resulted in a settlement of $85,000.
Kyle Harrington is not currently registered as a broker or investment advisor. His employment history includes Aurora Capital in Bridgehampton, New York, National Securities Corporation, Bannockburn Partners, Matrix Capital Group, First Allied Securities, Robert B. Ausdal & Company, Deutsche Bank Securities, Wachovia Securities, Prudential Securities, CIBC World Markets, BancBoston Robertson Stephens, Merrill Lynch, Morgan Stanley & Company, Goldman Sachs & Company, Putnam Lovell & Thornton, and Merrill Lynch. He currently holds no state licenses and has passed five securities industry qualification examinations.