William Kevin Harrison – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with William Kevin Harrison.
BrokerComplaints.com is currently investigating allegations related to William Kevin Harrison. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About William Harrison
William Kevin Harrison is an Investment Adviser. William Kevin Harrison’s Central Registration Depository (CRD) number is 4353102 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/4353102.
Click here to download a Detailed Audit Report for William Kevin Harrison.
William Kevin Harrison has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of William Kevin Harrison’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 7/26/2011
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC ADMIN RELEASE 34-64965; IA RELEASE 3252, JULY 26, 2011: THE SECURITIES AND EXCHANGE COMMISSION (\COMMISSION\) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE INSTITUTED PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 (\EXCHANGE ACT\) AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 (\ADVISERS ACT\) AGAINST WILLIAM KEVIN HARRISON (\HARRISON\ OR ESPONDENT\). THE COMMISSION FOUND THAT ON APRIL 15, 2011, THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NORTH CAROLINA ENTERED A JUDGMENT BY CONSENT AGAINST HARRISON, PERMANENTLY ENJOINING HIM FROM FUTURE VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933 (\SECURITIES ACT\), SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER, AND SECTIONS 206(1), 206(2), AND 206(4) OF THE ADVISERS ACT AND RULE 206(4)-8, THEREUNDER, IN THE CIVIL ACTION NUMBER 3:10-CV-00634.
- Resolution: Order
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: ASSOCIATION WITH ANY BROKER, DEALER, INVESTMENT ADVISER, MUNICIPAL SECURITIES DEALER, MUNICIPAL ADVISOR OR TRANSFER AGENT
- Start Date: 7/26/2011 Registration Capacities Affected: ASSOCIATION WITH ANY NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION
- Start Date: 7/26/2011 Registration Capacities Affected: PARTICIPATING IN ANY OFFERING OF A PENNY STOCK
- Start Date: 7/26/2011
DISCLOSURE 2 –
- Event Date: 12/15/2010
- Disclosure Type: Civil
- Disclosure Resolution: Final
- Disclosure Detail :: Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC LITIGATION RELEASE 21781, DECEMBER 16, 2010: THE SECURITIES AND EXCHANGE COMMISSION (\COMMISSION\) ANNOUNCED THE FILING OF A CIVIL INJUNCTIVE ACTION ON DECEMBER 15, 2010, ALLEGING THAT WILLIAM K. HARRISON VIOLATED THE ANTIFRAUD PROVISIONS OF THE FEDERAL SECURITIES LAWS. THE COMMISSION ALLEGED THAT HARRISON VIOLATED SECTION 17(A) OF THE SECURITIES ACT OF 1933 (\SECURITIES ACT\), SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 (\EXCHANGE ACT\) AND RULE 10B-5 THEREUNDER AND SECTIONS 206(1), 206(2) AND 206(4) OF THE INVESTMENT ADVISERS ACT OF 1940 (\ADVISERS ACT\) AND RULE 206(4)-8 THEREUNDER. THE COMMISSION ALLEGED THAT BETWEEN APPROXIMATELY DECEMBER 2007 AND OCTOBER 2008, HARRISON USED MISREPRESENTATIONS AND OMISSIONS OF MATERIAL FACT TO DEFRAUD AT LEAST FORTY-TWO BROKERAGE CUSTOMERS OF AT LEAST $8 MILLION IN CUSTOMER FUNDS. THE COMMISSION FURTHER ALLEGED THAT ON OR AROUND DECEMBER 2007, HARRISON AND ANOTHER SCHEME PARTICIPANT, ACTING UNDER A FINANCIAL SERVICES FIRM NAMED FOR THEM, BEGAN OFFERING THEIR CUSTOMERS AN INVESTMENT OPPORTUNITY THAT THEY MISREPRESENTED WAS GUARANTEED TO MAKE A 35% RETURN, WITH NO RISK OF LOSS OF PRINCIPAL. IN THOSE INSTANCES WHEN CUSTOMERS WERE INFORMED THAT THEIR MONIES WOULD BE USED FOR TRADING OPTIONS, HARRISON MISREPRESENTED THE RISKINESS OF THEIR TRADING STRATEGY BY TELLING CUSTOMERS THAT THEY HAD A FOOLPROOF APPROACH TO TRADING OPTIONS AND THAT THEIR PRINCIPAL INVESTMENT WAS SECURE AND WOULD MAKE HANDSOME RETURNS REGARDLESS OF MARKET VOLATILITY. HARRISON EITHER OPENED ACCOUNTS WITH AN OPTIONS FIRM IN THE CLIENT’S NAME OR COMMINGLED THE CLIENT’S FUNDS IN ACCOUNTS OPENED IN HARRISON’S WIFE’S NAME OR A JOINT ACCOUNT IN THE NAME OF HARRISON AND HIS WIFE. SO AS TO NOT DRAW ATTENTION TO THEIR CONDUCT, HARRISON AND THE OTHER SCHEME PARTICIPANT PLACED \LIMITED TRADING AUTHORIZATIONS\ AND OTHER RELATED DOCUMENTATION ASSOCIATED WITH THEIR SCHEME IN THE NAME OF HARRISON’S WIFE. ALTHOUGH THE TRADING STRATEGY THAT HARRISON EMPLOYED WAS INITIALLY SUCCESSFUL, IT SOON RESULTED IN SUBSTANTIAL INVESTOR LOSSES. BY OCTOBER 2008, HARRISON AND THE OTHER SCHEME PARTICIPANT HAD DEPLETED THE VAST MAJORITY OF THE MONEY THEY HAD RAISED FROM INVESTORS. ON OCTOBER 13, 2008, HARRISON SUBMITTED TO HIS EMPLOYER A RESIGNATION LETTER IN WHICH HE CONFESSED TO \MISDIRECTING\ $6.6 MILLION FROM SEVENTEEN OF HIS CUSTOMERS IN ORDER TO TRADE ONLINE. HE ALSO ADMITTED THAT HE HAD CONDUCTED THIS ONLINE TRADING WITHOUT FIRST SECURING THE AUTHORIZATION OF THESE 17 INDIVIDUALS.
- Resolution: Judgment Rendered
- Sanction Details :: Sanctions: Injunction
DISCLOSURE 3 –
- Event Date: 9/27/2010
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2008015740301
- DocketNumberAAO: 2008015740301
- Initiated By: FINRA
- Allegations: FINRA RULES 2010, 8210, NASD RULE 2110: HARRISON SERVICED CUSTOMER ACCOUNTS AS A REGISTERED REPRESENTATIVE AT HIS MEMBER FIRM WHEN HE BEGAN TRANSFERRING CUSTOMER FUNDS OUT OF BANK ACCOUNTS LINKED TO THE FIRM’S SECURITIES ACCOUNTS INTO AN ONLINE ACCOUNT AT ANOTHER BROKER-DEALER. HARRISON TRANSFERRED FUNDS TOTALED AT LEAST $6.5 MILLION BELONGING TO SEPARATE CUSTOMERS. HARRISON ESTABLISHED THE ONLINE ACCOUNT IN HIS RELATIVE’S NAME, HAD SOLE CONTROL OVER THE ONLINE ACCOUNT, AND CONDUCTED SIGNIFICANT OPTIONS TRADING IN THE ACCOUNT, USING THE FUNDS OF THE CUSTOMERS AND ENGAGING IN THE TRADING WITHOUT THE AFFECTED FIRM CUSTOMERS’ KNOWLEDGE OR CONSENT. HARRISON ALSO SUBSEQUENTLY TRANSFERRED SOME OF THE FUNDS OUT OF THE ONLINE ACCOUNT TO UNKNOWN DESTINATIONS. HARRISON FAILED TO RESPOND TO FINRA REQUESTS FOR INFORMATION AND FAILED TO APPEAR FOR FINRA ON-THE-RECORD INTERVIEW.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: All Capacities
- Start Date: 9/27/2010
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE FINDINGS, HARRISON CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- WACHOVIA SECURITIES, LLC (CRD#: 19616) :: 8/6/2003 – 11/12/2008 :: DOBSON, NC
- BB&T INVESTMENT SERVICES, INC. (CRD#: 33856) :: 1/16/2003 – 8/4/2003 :: CHARLOTTE, NC
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including William Kevin Harrison, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report William Harrison
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
William Kevin Harrison – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (4353102) for the broker – William Kevin Harrison
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.