Last Updated: December 2024 (Corpus Christi, Texas)
Mark Kemp Investigation Summary
Here’s what you need to know about Corpus Christi, Texas, stockbroker Mark Kemp:
- Name: Mark Alan Kemp
- Current Employer: McNally Financial Services Corp.
- Previous Firms: NEXT Financial Group, Hornor, Townsend & Kent, MONY Securities
- Function: Stock Broker/ Financial Advisor
- Aliases: Mark Kemp
- Primary Location: Corpus Christi, TX
- CRD 2057200
- Can Mark Kemp be sued in FINRA arbitration: Yes
- Sanctioned by FINRA
- Sanction by Texas State Securities Board: Yes – October 2024, details below.
- Discharged by a prior employer: Yes, twice, see CRD for details.
- Highest Settlement : $1.1 Million
- Pending Customer Disputes Seek Damages of more than $209,816
Discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With Mark Kemp As Your Stockbroker?
Did you know: Mark Kemp’s CRD discloses 11 prior customer complaints and one currently pending customer complaint.
Texas State Securities Board Sanctions Mark Kemp and McNally Financial Services Corporation- October 2024
The Texas State Securities Board (TSSB) issued a Disciplinary Order in October 2024 following an investigation involving 12 12 customer claims alleging fraud in connection with unsuitable sales of reverse convertibles.
TSSB made the following findings:
- Reverse Convertibles are high-risk products appropriate only for sophisticated investors who are willing and able to endure total loss of investment.
- Reverse Convertibles have a complicated features that protect sophisticated bond issuers, usually large banks, at the expense of retail investors.
- Many of the Reverse Convertibles Kemp purchased for his clients were linked to volatile equities. Futu Holdings Limited, Zillow Group, Pinterest Inc. , Workhorse Group Advanced Micro Devices, Digital Turbine, Baidu.
- The majority of Kemp’s clients were elderly investors on the brink or at the beginning of retirement, tolling over their emplyee sponsored 401ks who were looking for a way to replace their loss of income to get through retirement.
- Kemp purchased Reverse Convertibles in certain client accounts and in quantities that exceeded the risk tolerances these clients were willing to endure.
- Kemp had no reasonable basis to believe that recommending reverse convertibles was in the best interest of his clients.
The TSSB suspended Kemp’s investment adviser representative registration for two weeks and reprimanded him. TSSB also ordered Kemp and McNally to refund certain clients.
Pending Customer Complaint vs. Mark Kemp:
- In 7/2024 a customer of McNally Financial Services made a complaint alleging that Mark Kemp made an unsuitable recommendation to invest in structured products, including direct participation programs and limited partnerships. Damages of $209,816 are sought in this pending matter.
- In 7/2021 another McNally Financial Services filed a FINRA arbitration alleging that Mark Kemp recommended the purchase of direct investments, limited partnership investments and mutual funds that has resulted in the loss of $370,006. The customer alleges that Kemp violated principles of trade and fair dealing, the Texas Securities Act, breached his fiduciary duty and is liable for common law fraud.
Prior Customer Complaints vs. Mark Kemp include:
- In4/2024 a customer of McNally Financial Services was paid $150,000 ($120,000 of which was paid by Kemp personally) to resolve allegations that Mark Kemp made unsuitable recommendations and over concentrated their account with high-risk, unconventional investments.
- A customer of McNally Financial Services was paid $20,250 in 5/2023 to resolve allegations that Mark Kemp made unsuitable recommendations to invest in reverse convertible securities.
- In 2010 a customer of Hornor, Townsend and Kent/ NEXT Financial Group was paid $43,000 to resolve a FINRA arbitration alleging that Mark Kemp engaged in unauthorized trading and recommended unsuitable securities and annuity investments inconsistent with the risk tolerance and investment objectives.
- 9/17/2002- Customers of prior employer MONY Securities was paid $1,133,000 to resolve allegations that Mark Kemp fraudulently misrepresented and investment in World Home Industries.
Mark Kemp was discharged by NEXT Financial Group in 11/2009. The firm makes the follwoging allegation on Mark Kemp’s FINRA records: “Solicitation oof penny stock in violation of firm policy and failure to observe high standards of commercial order and equitable principal trade.”
Allegations of Broker Misconduct Against Broker Mark Kemp
In addition to the findings by the Texas State Securities Board, discussed above, customers of Mark Kemp have alleged the following wrongdoing in connection with the handling of customer accounts:
- Unsuitable Recommendation to Invest in Reverse Convertibles
- Unsuitable Recommendation to Invest in Annuities
- High-risk, Unconventional Investments
- Unauthorized Trading
- Overconcentrated Account
- Ignored Customer Risk Tolerance
- Ignored Customer Investment Objectives
- Fraud in the Inducement
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
Recover Your Investment Losses Now With Rex Securities Law
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.
If you have suffered investment losses in an account handled by Mark Kemp, contact us for a complimentary consultation with an experience 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.
