Last Updated: February 2025, Birmingham, AL
Here’s what you need to know about Birmingham, AL, former stockbroker Kevin McCallum:
- Name: Mr. Kevin Marshall McCallum
- Current Employer: Not currently registered
- Prior Employers: LPL Financial LLC, NBC Securities, Inc., Colonial Brokerage, Inc., AmSouth Investment Services, Inc., Glacier Point Advisors, LLC
- Function: Stockbroker / Financial Advisor
- Primary Location: Birmingham, AL
- CRD Number: 2222586
- Can Kevin McCallum be sued in FINRA arbitration: Yes
- Sanctioned by FINRA: Yes
- Highest Settlement or Award: $2,500,000
- Regulatory Actions: Sanctioned by FINRA & Alabama
If you’ve sustained damages from Mr. McCallum, discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money with Kevin McCallum as Your Stockbroker?
Kevin McCallum has faced multiple regulatory actions and customer disputes. A recent regulatory action by the Alabama Securities Commission resulted in a permanent bar due to violations involving unsuitable investments in business development companies (BDCs). McCallum was also involved in a customer dispute that resulted in a $2,500,000 settlement.
- In 2021, FINRA sanctioned McCallum for making unsuitable investment recommendations to 12 customers, resulting in their overconcentration in a high-risk BDC. Four customers were over the age of 60, and several invested retirement funds in these risky products, leading to losses totaling $1,222,092.
- In 2021 an arbitration panel awarded a customer of LPL Financial $500,000 to resolve allegations that McCallum engaged in fraudulent transactions and risk investments including unauthorized use of margin borrowing.
- In 2022 a customer of LPL Financial was paid $1,059,769 to settle an arbitration alleging that between May 2017-May 2020 McCallum used discretion to make concentrated investments in the customer account in a publicly traded BDC and was unsuitable.
- In 2022 another LPL customer was paid $1.9 million to settle a FINRA arbitration alleging that McCallum made unauthorized investments in a non-diversified closed end management company that was unsuitable.
See this for more information on REITs and Other Alternative Investments
Allegations of Broker Misconduct Against Kevin McCallum
Customers of Kevin McCallum have alleged the following misconduct in connection with the handling of their accounts:
- Unsuitable Investment Recommendations: McCallum recommended concentrated positions in high-risk BDCs, which were not suitable for several customers, particularly senior citizens and retirees.
- High-Risk Investments: Investments in illiquid and highly leveraged BDCs exposed customers to significant interest rate and credit risks.
- Failure to Provide Balanced and Accurate Information: McCallum sent promotional emails containing unwarranted and exaggerated claims about investment returns and omitted material risks associated with the investments.
- Unauthorized Use of Margin: In some instances, customers accused McCallum of engaging in unauthorized margin trading.
- Concentration Issues: Customers reported that up to 60% of their liquid net worth was invested in risky products, which led to substantial financial losses.
FINRA Rule 2111, which governs suitability obligations, was cited in several instances due to McCallum’s failure to ensure that the recommended investments were appropriate for the financial situations of his customers.
Alternative Investments: These are assets that are not stocks, bonds or cash. Alternative investments generally fall within five categories: hedge funds, private capital, natural resources (oil and gas, energy), real estate (REITs) and infrastructure. They are typically less liquid that conventional investments, less regulated with higher fees and generally higher risk. For more investigations involving Alternative Investments, see this.
Recover Your Investment Losses Now With Rex Securities Law
Investigation of LPL Financial and LPL Brokers-Lawsuits, Arbitrations & Customer Disputes
If you have suffered investment losses in an account handled by Kevin McCallum, contact us for a complimentary consultation with an experienced securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL, and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors, and broker-dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis, meaning that you do not pay legal fees unless we are successful.