Last Updated: November 2024 (New York, NY)
National securities fraud lawyers at Patil Law P.C. are investigating former Craft Capital Management broker Kevin Springstead (CRD #4937429) regarding allegations of churning, unsuitable recommendations, and excessive trading. Mr. Springstead was recently suspended by FINRA for failing to comply with an arbitration award.
The investigation follows multiple customer complaints, significant settlements, and concerning regulatory actions, along with numerous outstanding judgments and liens.
Critical Insights About New York Financial Advisor Kevin Springstead
- Advisor Name: Kevin F. Springstead
- CRD: 4937429
- Location: New York, NY
- Last Employer: Craft Capital Management LLC (2021-2022)
- Classification: Currently suspended by FINRA
- Can Kevin Springstead be sued in FINRA arbitration: Yes
- Customer Disputes: Three settled complaints
- Regulatory Actions: FINRA suspension (September 2023)
- Judgments/Liens: Five outstanding totaling over $257,000
- Previous Employers: Multiple firms including Arive Capital Markets (2020-2021), SW Financial (2019-2020)
- Professional Qualifications: Series 7, 63 licenses
- Current Status: Not registered with any firm
- Pattern of Brief Employment: Multiple firm changes in recent years
- Legal Issues: Multiple civil judgments and liens
Details of Recent Actions
- September 2023: FINRA suspended Springstead indefinitely for failing to comply with arbitration award
- June 2023: FINRA arbitration award of $3,241.06 for churning and unsuitable recommendations
- October 2023: $500,000 settlement regarding churning and unsuitable investments
- Prior Settlement: $97,500 settlement regarding breach of fiduciary duty
- Outstanding Judgments/Liens:
- $236,621.11 civil judgment
- $9,900.00 civil judgment
- Multiple other liens ranging from $2,000 to $5,500
Analysis of Alleged Misconduct
The pattern of complaints reveals serious concerns:
- Excessive trading (churning)
- Unsuitable recommendations
- Breach of fiduciary duty
- Unauthorized trading
- Misrepresentation of investments
- Failure to supervise
- Pattern of customer disputes
- Financial responsibility issues
Regulatory Framework and Investor Protection
SEC Regulation Best Interest
Reg BI required Mr. Springstead to:
- Act in clients’ best interests
- Control trading costs
- Avoid excessive trading
- Make suitable recommendations
- Disclose all material facts
- Monitor account activity
FINRA Rules and Their Significance
FINRA Rule 2111 mandates:
- Reasonable-basis suitability
- Quantitative suitability
- Customer-specific suitability
- Documentation of recommendations
FINRA Rule 2010 requires:
- High standards of commercial honor
- Just and equitable principles
- Ethical business practices
- Proper account management
Professional Background
Concerning aspects include:
- Multiple firm transitions in short periods
- Pattern of customer complaints
- Significant unpaid judgments
- Current FINRA suspension
- History of settlements
- Financial difficulties
- Brief tenures at firms
Red Flags for Investors
- Current FINRA suspension
- Multiple customer complaints
- Large recent settlements
- Pattern of excessive trading allegations
- Multiple outstanding judgments
- Frequent firm changes
- History of regulatory issues
- Financial instability
- Short employment tenures
- Failure to comply with arbitration award
Implications for Current and Former Clients
Current and former clients should:
- Review all account statements
- Calculate trading costs and turnover ratios
- Examine commission charges
- Document unauthorized trades
- Evaluate investment losses
- Consider independent portfolio review
- Understand their rights regarding excessive trading
- Review all fee structures
- Verify trade authorizations
- Assess portfolio performance
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have suffered investment losses in an account handled by Mr. Springstead or have concerns about excessive trading in your account, please contact Attorney Patil online or call (800) 950-6553 for a free initial consultation. Our securities fraud attorneys work on a contingency fee basis, meaning we only get paid if we help you recover money.
