Mark Kemp Allegedly Sold Unsuitable RCN Investments

Mark Kemp (CRD# 2057200[1]), a broker registered with McNally Financial Services, recommended unsuitable securities to elderly investors[2], according to a recent sanction. MDF Law is investigating the Corpus Christi, Texas-based financial professional for similar conduct. If you suffered losses in your accounts, call our law firm for a free consultation with an attorney.

To learn more about the allegations against Mr. Kemp, continue reading this post. The information herein is based on a November 20, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record. 

Sanction Concerns Reverse Convertible Notes

On October 14, 2024, the Texas Securities Commissioner undertook an enforcement action against Mr. Kemp. According to a disclosure on his BrokerCheck report, the action concerned recommendations of reverse convertible notes. “The majority” of his clients at the time, per the sanction, “were elderly investors on the brink or at the beginning of retirement.” With the goal of replacing lost income, these investors were rolling over employee-sponsored 401K plans. 

Mr. Kemp allegedly “purchased reverse convertibles in certain client accounts and in quantities that exceeded [their] risks tolerances.” He allegedly recommended these investments without any reasonable basis to believe they were in his clients’ best interest. Furthermore, the regulator concluded, these recommendations were unsuitable for the customers and constituted “an inequitable practice in the sale of securities.” As a result of these findings, the Commissioner suspended him for two weeks and ordered him and the firm to refund certain clients.

Pending Dispute Seeks 6-Figure Damages

On July 18, 2024, an investor lodged a dispute alleging that Mr. Kemp recommended unsuitable investments. The claim, which is still pending, seeks $209,816 in alleged damages.

Firms Settled Past Disputes

The above-described investor dispute is not the only one in Mr. Kemp’s record. Between 1999 and 2023, ten other parties of investors filed disputes that his member firms settled. These claims included allegations of over-concentration, unsuitable recommendations, fraud, misrepresentation, negligence, and breach of fiduciary duty. His current or former member firms settled the disputes for more than $2 million.

FINRA: Mark Kemp Based in Corpus Christi, Texas

Mr. Kemp launched his career as a broker in 1990, according to his BrokerCheck profile. That year, he registered with MONY Securities Corporation in New York City. Over the following years, he went on to work with Hornor Townsend & Kent and NEXT Financial Group. He joined his current member firm, McNally Financial Services, in 2010. Based in Corpus Christi, Texas, he remains with McNally today. With 33 years of experience as a broker, he has completed five industry exams, including the Series 65 and the Series 7. 

Reverse Convertible Note Losses?

Do you have concerns about reverse convertibles or other investments recommended by Mark Kemp? You have rights as an investor, including the right to pursue a recovery through the FINRA arbitration process. Call MDF Law’s dedicated team of investor advocates[3] at 800-767-8040 for a free consultation about your circumstances. We accept all cases on a contingency basis, meaning our clients only pay a fee if they win. Don’t delay: call MDF Law today.