Former Cape Securities Stockbroker Kevin Kimball Meadows Suspended for Excessive and Unsuitable Trading
Kevin Kimball Meadows of Columbus, Georgia submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly engaging in excessive and unsuitable transactions in violation of FINRA Rules 2111 and 2010. In June 2013, Kevin Kimball Meadows joined Cape Securities as a general securities representative. According to the FINRA findings, Meadows excessively and unsuitably traded three accounts of a customer. FINRA found that during the relevant period, one account had a turnover rate as high as 10.10 and a cost-to-equity ratio as high as 53 percent, the second account had a turnover rate as high as 7.93 and a cost-to-equity ratio as high as 44 percent and the third account had a turnover rate as high as 6.93 and a cost-to-equity as high as 37 percent resulting in a total loss of approximately $39,671. In addition to the FINRA findings, the customer represented to FINRA that his risk tolerance was never aggressive, although his documents with Cape reflected that his investment objective was capital appreciation/growth with an aggressive risk tolerance.
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