The story of Kevin O'Brien shows that a broker who gets kicked out of the securities business can find new life in the financial arena — and a very public arena at that.
The story of Kevin O'Brien shows that a broker who gets kicked out of the securities business can find new life in the financial arena — and a very public arena at that.
In September, Finra permanently barred Mr. O'Brien from working in the securities industry in any capacity. Mr. O'Brien, until last year a rep in Cincinnati with Robert W. Baird & Co. Inc., misappropriated client funds for his own benefit when he transferred $378,000 between the client's accounts, according to records with the Financial Industry Regulatory Authority Inc.
Having run for local office in Ohio a number of times over the years, Mr. O'Brien again turned to municipal politics. In November, he won election as an Anderson Township trustee. In that role, he is one of three managers of the township's $35 million budget.
One of the banned broker's campaign slogans was “integrity counts,” local residents said.
In a strange twist, Mr. O'Brien had a private swearing-in ceremony last week, according to a local news report. Most swearing-in ceremonies are public affairs.
Mr. O'Brien needs to have a municipal judge sign his bond before he can take his office on Jan. 1, however. And some local residents are apparently trying to prevent him from taking office.
Anderson Township, a suburb of Cincinnati, has three trustees but no mayor, which is common in Ohio. The trustees manage the town's finances, and oversee payments for fire and police departments and roads.
Mr. O'Brien's record in the securities business was not an issue in the election because elected officials simply didn't know about it, residents said.
A website, The Whistleblower Newswire, first reported details of Mr. O'Brien's background in the brokerage business. The Cincinnati Enquirer reported his closed door swearing-in ceremony.
Townspeople are “outraged and embarrassed,” said Peggy Reis, an Anderson Township trustee who was re-elected in November.
Although Finra has kicked him out of the business, Mr. O'Brien still reportedly works in the financial advice arena. According to a press report, he operates his own financial consulting business, O'Brien Private Wealth Management.
That firm, however, is not listed in the Securities and Exchange Commission's database of financial advisory firms.
According to Finra records, Mr. O'Brien also engaged in outside business activities for his clients, but did not inform Baird about that. He made the transfer of money between accounts while engaging in those outside business activities for clients, Finra said.
Mr. O'Brien consented to the ban without admitting or denying the findings, the Finra report said.
Mr. O'Brien did not return phone calls today for comment, but last week told the Enquirer that the issues around his brokerage career have no bearing on his ability to be a town trustee.
“The matter has been closed,” he reportedly said. “All parties have been satisfied. All this happened 15 months ago. The trading of stocks was only a fraction of my job.”
