The Financial Industry Regulatory Authority (“FINRA”) has permanently barred Capital City Securities representative Clint H. Keneer from the securities industry based on his refusal to give testimony during FINRA’s investigation into allegations that he made unsuitable investment recommendations to his customers.
Keneer was previously sanctioned in 2010 for recommending unsuitable investments of below investment grade (“junk”) bonds to another couple who were his customers. Likewise, Keneer had been sanctioned for mismarking customer order tickets and engaging in unauthorized trading in at least six customer accounts.
Keneer’s FINRA BrokerCheck report shows that he was fired by Stifel Nicolaus in 2008 following the unauthorized trading allegations. Capital City Securities, LLC, of Powell, Ohio, hired Keneer in 2012 even though by that time Keneer had already racked up five customer disputes against him, two regulatory suspensions, and had been fired by Stifel Nicolaus.
Stockbrokers have a duty to know the important facts pertaining to their customers’ investment objectives, risk tolerance, experience, investment time horizon, net worth, and other pertinent financial information, and have a reasonable basis to believe that the investments and strategies they recommend are suitable for the customer.
Brokers likewise cannot make unauthorized trades in customers’ accounts: they either must receive discretionary authority from their customers to make trades on the customers’ behalf or they must discuss each trade with their customers and give a balanced presentation of the positives and negatives of the investments and receive the customers’ approval of the trade.