After leaving Merrill Lynch in 2001 Kevin Palmer orchestrate an alliance of Wall Street and business executives at Strategic Management Advisors to build better Broker-Dealers. The mission was to provide smaller financial firms perspective needed to implement change to improve business models, revenue generation and profit margins. Before that point Kevin Palmer worked hard to acquire many licensees. Not wanting to give up legacy of education, obtained approval from his initial SMA client, First Montauk to “park” his licenses as quid pro quo for success of consulting work, as long as he followed firm rules of continuing education and most arduous, provide regular outside business activity disclosures.
After many mergers and acquisitions the firm eventually became part of First Allied Securities where he was never a producer but traded his own and family accounts using tools of the firm. Ten years went by memory of his agreement with Montauk faded. When the parent company, Cetera emerged from bankruptcy, pressure caused First Allied to cut cost. It was expensive keeping licenses active for a non-producer like Palmer who, opened no accounts, brought in no assets or for that matter, paid attention to corporate directives. The biggest thorn in their side was his extensive business, charitable, and BOD positions the firm was required to supervise—a process that took months every year! Palmer was an expense because of widespread non-firm activities and not wasn’t making money for the firm. So they looked for a way to discharge him.
His 32 years in the security industry with only two, customer disputes was an excellent track record. His reputation for professionalism and integrity when employed by Merrill Lynch and Paine Webber was unsurpassed. A closer look reveled the two allegations of misconduct were not directly related to Palmer. The first customer initiated complaint, about sub-grade investments was part of a class action suit settled in 1994 by PaineWebber themselves because the bonds were investment banking deal recommendation. The second in 2000, while employed at Merrill Lynch, the customer alleged while Palmer was running Supervision and Trading Modules. The firm decided since the client approved the portfolio as a whole, they would settle, without failure to supervise, keeping powder dry for large egregious complaints or financial scams.
Apparently First Allied could not discharge this once large producer and supervisor based on his stellar track record so, they looked for another reason to adjudicate. Their new course of action was a fabricated trap. They insisted he shut down all outsider business activities hoping it would drive him out. When he refused, they went after his wife’s Arizona-based design business websites. Then they intimidatingly requesting he inhouse all websites at the firm under broad, sweeping and often unfair powers of FINRA. When that didn’t work, they called accounts of record saying. “They were interested in hearing complaints regarding Mr. Palmer.” However his accounts were family, one of which jointly owned by his wife. When she said, “of course he does discretionary trades.” They used a little know technicality to discharge him for unauthorized trading. Given the option to resign without cause he did so but because of a vendetta by the CEO they filed it as termination.
The information contained herein has been obtained from reliable sources however may not be accurate and is not guaranteed by us. Readers are encouraged to undertake their own independent investigation and evaluation of the relevant facts. All claims and allegations are subject to adjudication, decisions may be subject to appeal, and no inference is intended, nor should any inference be made from any information contained herein from any source. This posting and the information on our website is for general information purposes only. This content should be not considered legal advice, and any responses, comments, e-mails, other communications do not form any attorney client relationship.
Combating Dishonest Attorney Advertisement. If you or someone you know has lost money investing call 480- 515 -2211 for a free consolation about the facts. Because some stock fraud news & information Attorneys at Law accept all cases on a contingency basis and only get paid if and when you collect money. The feasibility of your claim may be limited, because you may not be eligible to recoup your losses. So we encourage you to avoid delay. Call us first now to speak for free about such an attorney who would make the financial mistake of posting a solicitation about some on with only 3 clients.
“Once contravention in old thinking is terminated, exercised discretion inspires self-realization”Kevin J Palmer
Posted in: Series 65 (Uniform Investment Advisor Law Examination) on June 18, 2004 Tagged: First Allied Kevin Palmer Series 63 (Uniform Sales securities Agent State Law Examination ) on June 7, 1985
Comments are closed. Securities Fraud Reports (Series 7 general securities Representative Examination May 18.1985 ) / FINRA Disciplinary Action (Series 8 (General Securities Sales Supervisor Examination [Options Module & General Module ])
