Last week, Stock broker Kinan Nimeh (CRD No. 4438900) was suspended by the Financial Industry Regulatory Authority for alleged sales practice violations. Nimeh allegedly recommended unsuitable transactions in leveraged Exchange Traded Funds in the accounts of 29 customers in violation of FINRA Rule 2111(a), which provides that “[a] member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile.” The sales practice violations occurred while Nimeh was registered with McBarron Capital LLC (CRD#:131431), , and was supposedly under special supervision by the firm as a result of prior regulatory action. Prior to that Nimeh was registered with Rockwell Global Capital, LLC (CRD#:142485).
FINRA has repeatedly admonished brokers about the hazards of investing in non-traditional ETFs. In Regulatory Notice 09-31, FINRA stated that Non-Traditional ETFs “typically are not suitable for retail investors who plan to hold them for more than one trading session, particularly in volatile markets.” Despite these warnings, and additional warnings in the investment prospectuses, Nimeh recommended that Non-Traditional ETFs be held in customer accounts for between 62 and 176 days. The averaged holding period was 130 days. According to FINRA’s published disciplinary award, Nimeh did not have reasonable grounds for believing that his recommendations were suitable for his customers.
Nimeh has been the subject of five (5) customer complaints, as reported on the CRD, alleging, inter alia, that he engaged in unauthorized trading and churning, and made unsuitable investment recommendations.
If you are a former customer of Kinan Nimeh, and you have suffered investment losses, we may be able to help you recover some or all of your losses. We regularly evaluate and prosecute claims on behalf of investors who have suffered investment losses as a result of unsuitable investment recommendations. If you would like to discuss your claim with an experienced attorney who specializes in this area, call Daniel J. Broxup of Mika Meyers, PLC at (616) 632 8059.