Mark Kemp Investigation
October 2022 – Corpus Christi, Texas
According to publicly available records Mark A. Kemp (CRD#2057200) , a stockbroker who currently works for San Antonio-based McNally Financial Services Corp. , discloses a prior regulatory event, 8 prior customer disputes, 3 pending customer disputes and 2 terminations from employment.
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.
IN 4/2012, Kemp was fined $5,000 and suspended five days by FINRA to resolve allegations that in 11/2009 while employed by NEXT Financial Group, he mismarked seven order tickets for a penny stock as unsolicited when, in fact, they were solicited. FINRA Case 2009018570501.
We are currently representing a client residing in Texas who is seeking recovery of damages for the mismanagement of his account, including losses suffered on GPB Armada (formerly GPB Waste Management).
Currently pending customer cases against Mark Kemp include:
- FINRA Case 22-728- A customer of McNally Financial alleges that Kemp made unsuitable investment recommendations specific to reverse convertible securities and is seeking damages of $157,800
- FINRA Case 21-1777-A customer of McNally Financial alleges that Kemp violated the Texas securities act, committed fraud under the Texas Business and Commerce Code and breached his fiduciary duty. The customer seeks damages of $370,006.
Prior customer disputes against Mark A. Kemp resulting in the payment of compensation to former customers include:
- FINRA Case 9-5086-While employed by Hornor, Townsend and Kent a customer sought damages of $320,000 and alleged that Kemp engaged in unauthorized trading and recommended unsuitable securities and annuities inconsistent with their financial situation, risk tolerance and investment objectives. That case settled for $43,000.
- FINRA Case 9-03476-A customer of Hornor, Townsend and Kent alleged that Kemp misled them about suitable strategies and investments, engaged in unauthorized transactions and failed to follow their directions. The case settled for $145,000.
- Nueces County, TX, Case 00-4498C- a group of customers of MONY Securities Corporation alleged that Kemp and others were engaged in the sale stock in Worldhome Industries. The customers alleged that they relied on what they thought was good faith of Mr. Kemp and MONY and that none of the funds they invested went to the company. That case was settled for $1,133,000.
Kemp has been employed by McNally Financial Services since 4/2010. He was previously employed by NEXT Financial Group, Hornor, Townsend & Kent and MONY Securities. Kemp discloses a business affiliation with Kemp Financial Services in Corpus Christi, TX.
In 11/1998 Kemp was discharged by MONY Securities who alleged that Kemp participated in selling of private, non approved, securities, “selling away”.
In 11/2009 Kemp was discharged by NEXT Financial Group who made the following allegation on Kemp’s FINRA record: “Solicitation of penny stock in violation of firm policy and failure to observe high standards of commercial order and equitable principal trade.”
Recent History of GPB Capital Holdings
GPB purportedly invested in various industries, including waste management and automobile dealerships. The GPB companies include:
- GPB Automotive
- GPB Cold Storage
- GPB Eurobond Finance
- GPB Holdings II
- GPB Holdings III
- GPB Holdings Qualified
- GPB NYC Development
- GPB Scientific
- GPB Armada (formerly Waste Management)
In 2018 GPB failed to produce audited financials and announced that no new investor capital would be accepted. That same year Massachusetts securities regulators launched an investigation and GPB’s auditors resigned.
In 2019 FINRA and the Securities & Exchange Commission launched investigations of broker dealers that sold GPB products and a class action filed against GPB Capital Holdings on behalf of investors. In October 2019 GPB officials are charged with obstruction of justice.
In February 2021 the New York State Attorney General filed suit against GPB Capital Holdings and five other co-defendants for allegedly engaging in a Ponzi-like scheme. Separate similar suits have been filed by other states and the SEC. In February 2021 GPB’s founder and CEO, along with three others was indicted for fraud and accused of operating a Ponzi scheme.
If you have losses in an account handled by Mark A. Kemp, you may be able to recover damages from his employer through FINRA arbitration. If you have information you believe would be helpful, we would appreciate hearing from you.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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