Former UBS Financial Services Inc. Kenneth Tyrrell Barred from FINRA for Private Securities Transactions and Outside Business Activities
Posted on Wednesday, December 13th, 2017 at 10:40 am
Erez Law is currently investigating former UBS Financial Services Inc. financial advisor Kenneth Tyrrell (CRD# 2457452) regarding participating in undisclosed private securities transactions and engaging in undisclosed outside business activities. Tyrrell was registered with Cary Street Partners in Richmond, Virginia from August 2016 to October 2017, when he was terminated regarding, “FINRA investigation regarding private securities transactions, outside business activities and compliance certifications.” Previously, Tyrrell was registered with UBS Financial Services Inc. in Vienna, Virginia from 2008 to 2016, when he was terminated regarding “Financial Advisor was discharged because he had undisclosed outside activities and investments, failed to disclose conflict of interest involving his wife’s business that serviced a client of the firm, and engaged in selling away, all in violation of firm policy.” He is not currently registered with any brokerage firm and has been barred by FINRA.
In October 2017 According to the FINRA Acceptance, Waiver & Consent (AWC), Tyrrell participated in 11 undisclosed private securities transactions totalling $13 million with a customer and also engaged in five undisclosed outside business activities, all of which involved the same custorner, between May 2011 and August 2016. Tyrrell failed to disclose his private securities transactions and outside business activities to UBS Financial Services Inc. Tyrrell was not compensated for these transactions, which involved the customer’s investment in private equity and debt securities in companies in a variety of industries as part of the customer’s overall financial plan. However, Tyrrell referred investments to the customer; conducted due diligence and relayed his views on the transactions at the customer’s request, helped the customer establish certain holding companies to make the investments; and facilitated transfers of funds from the customer’s UBS accounts to the companies.
FINRA also found that Tyrrell engaged in five outside business activities with the customer above without providing prior written notice to UBS Financial Services Inc. “Three of the outside business activities involved Tyrrell, at the customer’s request, serving as an officer of the holding companies the customer used to make his outside investments. A fourth was a company Tyrrell co-founded in which the customer invested. The fifth was a concierge services company owned by Tyrrell’s spouse with which Tyrrell was also involved,” according to the AWC.
In September 2017, FINRA opened an investigation into Tyrrell and made a preliminary determination to recommend that disciplinary action be brought against Tyrrell, alleging potential violations, including participating in undisclosed private securities transactions, engaging in undisclosed outside business activities, and making false compliance certifications.
Tyrrell has been the subject of two customer complaints 2001 regarding unsuitable investments and unauthorized trades, both of which were denied, according to his CRD report.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, UBS Financial Services Inc. may be liable for investment or other losses suffered by Tyrrell’s customers.
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