In the normal course of event there were mergers and acquisitions and the small east coast firm was part of First Allied Securities. Ten years had gone by after he left the securities industry and the memory of his agreement faded as did its intent. However, after the parent company of First Allied Securities emerged from bankruptcy and Robert Moore CEO of Cetera was under pressure to perform. First Allied Securities and First Allied Advisory Services decided it was time to cut cost.
It was expensive to keep the licenses active for a non-producer like Kevin Palmer who had extensive business, charitable and BOD positions, that the firm was required by FINRA, to supervise. If they discharged him, they could also save the firm exchange fees because his two-million-dollar day trading account and three other family accounts he managed under the agreement with first Montauk were all done so at a deep discount but utilized the institution trading desk. So, they looked for a reason to terminate Kevin Palmer from First Allied Securities.