Kenneth John Arellano, CRD# 2660786, is a registered broker and investment adviser representative with 30 years of industry experience. His FINRA BrokerCheck report lists four disclosures: a final regulatory action, a settled customer dispute, and two employment separations after allegations. The 2023 regulatory action resulted in a $5,000 fine and a 30-day suspension that has ended.
This review draws on BrokerCheck and FINRA’s Acceptance, Waiver and Consent document. Allegations, settlements, and final regulatory findings are separate matters and are identified accordingly below.
Current registrations and employment history
BrokerCheck shows active registrations with Vanderbilt Securities, LLC and Vanderbilt Advisory Services. Both relationships began on August 2, 2024. The listed branch office is 224 Harrison Street, Syracuse, New York 13202.
| Current firm | Firm CRD# | Capacity | Registered since |
|---|---|---|---|
| Vanderbilt Securities, LLC | 5953 | Broker | August 2, 2024 |
| Vanderbilt Advisory Services | 116537 | Investment adviser representative | August 2, 2024 |
Arellano first registered with FINRA in 1995. His earlier registrations include Cadaret, Grant & Co., Inc., CRD# 10641, from October 2019 to August 2024. Before that, he was registered with LPL Financial LLC, CRD# 6413, from October 2013 to October 2019.
His record also lists Merrill Lynch, Pierce, Fenner & Smith Incorporated, CRD# 7691, and RBC Capital Markets, LLC, CRD# 31194. Earlier employers include H&R Block Financial Advisors, Inc., Citigroup Global Markets Inc., Prudential Securities Incorporated, HSBC Brokerage (USA) Inc., Citicorp Investment Services, and Zweig Securities Corp.
What happened in the 2023 FINRA action
On October 17, 2023, FINRA accepted an Acceptance, Waiver and Consent settlement under case number 2019064285601. Without admitting or denying the findings, Arellano consented to the sanctions and the entry of FINRA’s findings.
The AWC states that Arellano used a text messaging service not approved by LPL Financial between October 2018 and September 2019. The messages concerned securities business and included customer investment profiles and account balances. Arellano did not retain copies for the firm to preserve.
FINRA found that this conduct caused the firm to maintain incomplete books and records. The AWC cited FINRA Rules 4511 and 2010. Rule 4511 requires member firms to make and preserve required books and records, while Rule 2010 requires high standards of commercial honor and just and equitable principles of trade.
The sanctions were a $5,000 fine and a 30-day suspension from association with any FINRA member in all capacities. BrokerCheck records the fine as paid on October 31, 2023. The suspension ran from November 20 through December 19, 2023.
Arellano is not currently under that suspension. The AWC addressed his conduct and did not announce a separate sanction against LPL Financial. BrokerCheck also states that the order was not based on violations of laws prohibiting fraudulent, manipulative, or deceptive conduct.
Disclosure history and customer settlement
| Date | Disclosure type | Status or outcome | Reported amount |
|---|---|---|---|
| October 17, 2023 | Regulatory action | Final AWC; 30-day suspension completed | $5,000 fine |
| November 5, 2019 | Customer dispute | Settled on April 11, 2020 | $141,087.50 settlement; $0 individual contribution |
| September 20, 2019 | Employment separation after allegations | Discharged by LPL Financial | None reported |
| November 2, 2007 | Employment separation after allegations | Voluntary resignation; internal review concluded with no action taken | None reported |
The customer complaint concerned alleged misrepresentations involving structured notes and an annuity. BrokerCheck contains two reporting versions. The firm version identifies a fixed annuity, while the broker version identifies a variable annuity. Both versions report the same activity period, settlement date, and settlement amount.
Arellano’s broker comment states that the investments were explained on numerous occasions and that customers received signed written documentation. He also states that the firm settled without his knowledge. The settlement resolved the complaint, but it did not establish that the allegations were true.
Employment separation disclosures
LPL Financial discharged Arellano on September 20, 2019, after an internal review. The disclosure says he used non-firm issued or approved devices for internal electronic correspondence that the firm could not monitor. The AWC separately states that LPL filed his Form U5 on October 17, 2019, citing unapproved text messaging among the reasons.
Arellano’s reported comment denies the substantive allegations and reporting. His comment also characterizes the matter as not investment related and says no investors were involved. FINRA’s later AWC nevertheless contains final findings about securities-related business messages and recordkeeping.
The earlier H&R Block disclosure reports a voluntary resignation on November 2, 2007. The firm reviewed variable annuity sales practices and contract paperwork. It found instances where paperwork went directly to the carrier in addition to the firm, contrary to firm policy. The disclosure says the internal review concluded and no action was taken.
What investors should do
Investors should read the actual disclosure language rather than treat the total count as a measure of severity. A final regulatory action, a settled complaint, and an employment separation carry different meanings and different standards of proof.
- Confirm the advisor’s current firm and registration status through BrokerCheck.
- Review account statements, investment documents, and approved communications.
- Ask the firm to explain any unfamiliar product, fee, or account entry.
- Keep dated copies of questions, responses, statements, and transaction records.
Investors who believe they suffered losses related to this matter may wish to consult a qualified securities attorney to review their options.
Frequently asked questions
Is Kenneth John Arellano currently suspended?
No. The 30-day suspension ended on December 19, 2023. BrokerCheck currently shows active registrations with Vanderbilt Securities and Vanderbilt Advisory Services.
What did FINRA’s 2023 action concern?
The action concerned unapproved text messaging and incomplete firm books and records. FINRA cited Rules 4511 and 2010. Arellano accepted the sanctions without admitting or denying the findings.
What was the customer dispute about?
Customers alleged misrepresentations involving structured notes and an annuity. The firm and broker reporting versions identify different annuity types. The dispute settled for $141,087.50, with no individual contribution reported for Arellano.
Does a settled complaint prove misconduct?
No. A settlement resolves a complaint without necessarily establishing the truth of the allegations. BrokerCheck cautions that disclosures may be contested, unproven, or resolved without an admission or finding of wrongdoing.
Legal disclaimer
This article is for informational purposes only and does not constitute legal or investment advice. It summarizes public FINRA records retrieved on November 5, 2026. Records may later change, and readers should consult the current BrokerCheck report before making decisions.
