May 21, 2024

Wells Fargo Pays Kinsman Victim

Staten Island stockbroker Leonard Kinsman has a track record of accusations of wronging his investors in several ways. But despite accusations regarding continued investment schemes on his part, he was a former Merrill Lynch broker and is currently a registered stockbroker at Wells Fargo.

Due to the fact that he has been an active stockbroker for over twenty-two years and was employed with eight different brokerage firms, there are numerous investors who may have been a victim of Kinsman.

Below, we explore Kinsman’s tarnished history as a stockbroker in New York, our current FINRA arbitration claim against him for purportedly taking advantage of a New Jersey widow with three children, and what you can do if you have been victimized by stockbroker deceit.

Kinsman’s History of Alleged Stockbroker Misconduct

Kinsman has been a registered stockbroker for more than twenty years, and his conduct first was called into question, legally, in 1998 when a client filed a complaint after allegedly incurring unnecessary losses after Kinsman purchased over-the-counter equities. Kinsman’s employer at the time, Royal Hutton Securities, settled the claim for $180,000.

Then, in 2008, another claim was filed by an investor who claimed to have discovered unsuitable auction rate securities (ARS) in their accounts. Again, Kinsman’s employer, Citigroup Global Markets, Inc., stood by their broker, stating that the ARS market as a whole was suffering illiquidity and auction failures and settling the claim for $202,626.

Additional customer disputes include a misrepresentation complaint in 2016. Wells Fargo paid this individual a settlement of $24,000. Most recently, an April 2019 claim filed by our client, Robin Fratto, seeks $2.3 million for recovery of investment losses and punitive damages.

New Jersey Widow Files FINRA Arbitration Claim

We are currently working with Fratto to recover compensation through a Financial Industry Regulatory Authority (FINRA) arbitration claim for the substantial losses she endured, allegedly due to the reckless and inappropriate misconduct of Kinsman.

Fratto was issued more than $2 million after her husband passed away suddenly in 2011. From there, she sought out a stockbroker who could help her purchase her home and access $3,000 monthly to support herself and her three children.

Instead, she claims that Kinsman not only forged her name on documents but traded speculative options, placed her money on margin, and purchased securities that did not produce an income—until there was nothing left and Fratto was taken by surprise. For these reasons, we are seeking full repayment of her losses in the amount of $2.3 million.

Reach Out if You’re a Victim of Kinsman or Another Reckless Broker

Throughout Kinsman’s career, he had the potential to have taken advantage of many of his investors. If you have reason to believe that you have been a victim of stockbroker misconduct by Wells Fargo broker Leonard Kinsman or another irresponsible stockbroker, Meissner Associates may be able to help you recover compensation for your investment losses. You can schedule a complimentary consultation by submitting the secure contact form to the right or giving our firm a call at 212-764-3100.