Leonard Kinsman, Formerly of Wells Fargo, Barred by FINRA for Refusing to Appear for Testimony

Kinsman’s testimony was requested by FINRA in connection with its investigation into the events leading to Kinsman’s termination from Wells Fargo.

The Sonn Law Group is investigating allegations that Leonard Kinsman 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.

Leonard Kinsman (CRD#: 2816535) was previously registered with Wells Fargo Advisors from 2014 until 2019. On July 4, 2019, Wells Fargo filed a Uniform Termination Notice for Securities Industry Registration (“Form U5”) stating that Kinsman had been discharged for unprofessional conduct. Based on this information, FINRA opened an investigation into the conduct that led to Kinsman’s termination. 

On April 23, 2020, FINRA sent Kinsman a request for on-the-record testimony pursuant to FINRA Rule 8210. Kinsman acknowledged the request and stated that he would not appear for testimony. Kinsman was subsequently barred from association with any FINRA member firm based on his refusal. 

Kinsman has five other disclosures on his BrokerCheck report.

April 2019 Customer Dispute

• Status: Settled
• Allegations: “Claimant alleges that from 2012 through 2017, the FA made unsuitable investment recommendations, forgery and falsifying business records.”
• Settlement Amount: $995,000.00

October 2016 Customer Dispute

• Status: Settled
• Allegations: “Client alleged they were told their investment was principal protected, would be guaranteed an annual return of at least 5%, and had no fees associated with it.””
• Settlement Amount: $24,000.00
• Broker Comment: “After several meetings over the course of over 6 months working alongside with the grantor, beneficiaries, trustees, and the client’s estate attorney and accountant, we conducted several suitability studies, reviewed total client assets, risk tolerance, financial goals, and the purpose of funds invested was to gain access to death benefit rider, transfer wealth to beneficiaries of trust, and gain tax deferred growth in variable annuity investments within an irrevocable trust. Investment was suitable based on the suitability studies, documented assets to be included inside the trust, and disclosed personal assets outside of the trust. Liquidity needs for funds invested were stated as none. Although the result was liquidation of the policies to satisfy the client, the client did not sustain losses on investments made. Matter was settled to avoid the uncertainty and cost of litigation and arbitration.”

May 2016 Customer Dispute

• Status: Withdrawn
• Allegations: “Claimant alleges that investment recommendations were misrepresented and unsuitable.”
• Damage Amount Requested: $50,000.00
• Broker Comment: “Claimant voluntarily dismissed all claims.”

March 2008 Customer Dispute

• Status: Settled
• Allegations: “This verbal complaint arose out of the sale of an auction rate security (ARS) that was made prior to the widespread illiquidity in the ARS market that occurred in February 2008.”
• Settlement Amount: $200,626.00
• Broker Comment: “This matter involves the sale of Auction Rate Securities (ARS). The transaction(s) at issue took place before mid-February 2008, when the ARS market suffered widespread auction failures and illiquidity. The financial advisor did not cause, contribute or have any control whatsoever over these market events. The firm reached agreement with certain of its regulators, pursuant to which it repurchased ARS for their full par value from certain clients, including the instant client, whether they complaint or not. The financial advisor was not a party to that agreement, did not make any payment to the client, and was not asked to and did not contribute to the repurchase amount. The settlement amount in item 11 above reflects the par value of the repurchased ARS, as required by FINRA regulatory notice 09-12. Representative disputes the assertion in the above paragraph.”

May 1998 Customer Dispute

• Status: Settled
• Allegations: “Client was unhappy with performance with account. Filed complaint with my company, although I disagree with clients complaint. My firm decided to settle complaint with [customers].”
• Damage Amount Requested: $180,000.00
• Settlement Amount: $180,000.00

Contact Us Today

The Sonn Law Group is currently investigating allegations that Leonard Kinsman committed 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.