Dan King, Ex-Newbridge Advisor, Sanctioned for Margin Trades

San Diego Financial Advisor Sanctioned, Suspended For Unsuitable Margin Trader

Dan King is a San Diego-based financial advisor who was recently sanctioned for unsuitable margin trades. According to the Financial Industry Regulatory Authority’s (FINRA) records, King has worked as a broker with Kingswood Capital Partners for over ten years and also served as an investment advisor at Kingswood Wealth Advisors.

King, in his BrokerCheck Report, consented to findings that he advised unsuitable margin use to effect trades for two customers who weren’t sophisticated investors. FINRA reported that these allegedly unsuitable trading margins cost the customers commissions, fee, and margin interest totaling more than $46,000.

The report also states that King used a short-term strategy to trade in customers’ accounts, which resulted in losses. FINRA asserts that King’s recommendations exposed customers to significant losses, costs and risks. A retired repairman had realized and accumulated trading losses totaling $22,486.27. Another customer, who was an IT account manager had realized trading losses totaling $58,050.27. In response to these findings, King received a suspension of two months, a fine of $10,000 and an order for restitution amounting to $33,374.31.

The BrokerCheck report of Mr. King also reveals two investor complaints. In the most recent complaint filed in 2022 it was alleged that King had recommended unsuitable investment in unspecified product. The complaint settled for $20,000 In 2016, an earlier complaint alleged that King made unauthorized trades. The complaint was settled for a total of $12,000

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It’s worth noting that there have been similar complaints against other Newbridge Securities advisors. These include John Forrester and Kerri jamison. Joseph Smith Jr. Ivan Gefen & Greg McLeod are also current or ex-Newbridge Securities advisors. Similarly, current or ex-Kingswood Capital advisors Thad Bissel, Brady Fuchs Richard Siminou and Phillip Anderson have all faced similar issues.

Background and Experience

Dan King is a securities industry veteran with 12 years’ experience. He lives in San Diego, California. Since 2022, he has worked as a broker with Kingswood Capital Partners and an investment adviser at Kingswood Wealth Advisors. His previous registrations include Benchmark Investments, Newbridge Securities Corporation, Legend Securities, Melville, New York, 2015-2016, Tryco Securities, Melville, New York, and Brookville Capital Partners, Melville, New York.

King has successfully passed four securities industry qualification exams. These include the General Securities Representative Examination, the Securities Industry Essentials Examination, the Uniform Securities Agency State Law Examination and the Uniform Investment Adviser Law Examination. He holds licenses in California, Michigan New Jersey New York, Oklahoma Texas and Utah.

What Investors should Know

Investors should be aware of the recent sanctions against Dan King and investor complaints. Margin trading that is not suitable, such as the alleged case in this instance, exposes investors to substantial risks, costs and losses. Investors should thoroughly investigate and vet their financial advisors prior to entrusting with their hard-earned cash.

Investors who are considering hiring a financial adviser should:

  • BrokerCheck by FINRA is a good resource to use for checking the advisor’s history and disciplinary records.
  • Check for any complaints from customers or sanctions against advisors.
  • Make sure the advisor you choose is licensed and registered in your state.
  • Understanding the investment strategies and advice of your advisor is important.
  • Speak to former clients and ask for references.
  • Before making any investment decision, seek a second opinion from another financial professional or consult with them.

Due diligence is a way for investors to protect themselves against potential financial harm, and to make informed investment decisions.

Dan King, San Diego’s financial advisor, was sanctioned and suspended after allegations of inappropriate margin trading. The recent FINRA sanctions, as well as previous investor complaints, raise concerns about his suitability to be a financial adviser. Investors are advised to exercise caution when choosing a financial advisor and do thorough research before they entrust them with their investment.

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