David Kendrick was accused of participating in an investment club without disclosing his involvement with his firm.
The Sonn Law Group is investigating allegations that David Kendrick committed misconduct. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.
David Kendrick (CRD#: 4384666) consented to the sanctions and to the entry of findings stating that between November 2011 and January 2017, while associated with NYLife, Kendrick “engaged in an outside business activity, as an officer, member, and manager of an investment club, without providing prior written notice to NYLife, in violation of FINRA Rules 3270 and 2010,” according to FINRA.
Between June 2010 and May 2018, Kendrick also participated in nine private securities transactions, without providing prior written notice of, or receiving written approval for, these transactions from NYLife, FINRA said.
NYLife reported Kendrick’s resignation after allegations that he “ fail[ed] to disclose his participation in an investment club and other unapproved outside business activities, including investments in private placements,” according to the letter of acceptance, waiver, and consent.
Kendrick was “permitted to resign after failing to disclose his participation in an investment club and other unapproved outside business activities including investments in private placements. The company’s review found Mr. Kendrick invested his own money and provided information about investment opportunities to certain New York Life clients and other investors who invested in private placements.”
FINRA stated that in November 2011, Kendrick and eight other individuals (including two of NYLife’s customers) started an investment club, “TC”.Kendrick was designated as a manager and agent and vested with the exclusive authority to manage and control the affairs of TC, while also receiving an irrevocable power of attorney, FINRA noted. Following his appointment, Kendrick allegedly managed TC’s financial and administrative affairs that included electing, introducing, and facilitating TC’s investments.
Kendrick did not disclose his participation in TC to NYLife until August 2015, when he requested the firm’s approval of TC as an outside business activity, FINRA said. Kendrick also did not tell NYLife that he commenced his TC-related activities in November 2011 or that he had personally invested and facilitated the investment of others through TC.
Although the firm did not approve TC as an outside business activity, Kendrick allegedly continued his TC-related activities and continued to engage in outside business activities through TC until about January 2017, when he was again instructed by the firm to remove himself from TC’s registration” with the Louisiana secretary of state, FINRA said.
FINRA also stated that Kendrick “made false statements to the firm on six annual compliance questionnaires and five branch audit questionnaires concerning his outside business activities.”
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The Sonn Law Group is currently investigating allegations of misconduct. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.