Dan King: FINRA Sanctions Ex-Newbridge Advisor over Margin Trades

San Diego financial advisor Dan King (CRD# 5954543) was recently sanctioned and suspended in connection with allegations of unsuitable margin trading. Financial Industry Regulatory Authority records show that he is a broker and an investment advisor with Kingswood Capital Partners and Kingswood Wealth Advisors, respectively.

Mr. King’s BrokerCheck report discloses his recent FINRA sanction. Filed in July 2023, it states that he consented to the entry of findings that as a Newbridge Securities Corporation representative, “he recommended unsuitable use of margin to effect trades in the accounts of two customers who were not sophisticated investors.” These allegedly unsuitable margin trades caused the customers to pay commissions, fees, and margin interest exceeding $46,000, according to FINRA.

The findings go on to state that he also implemented “a short-term trading strategy” in the customers’ accounts that also incurred losses. “King’s recommendations to engage in unsuitable trading on margin exposed his customers to significant risk, increased costs, and sizeable losses in their accounts,” FINRA alleges, stating that he did not have a reasonable basis to believe this use of margin was suitable for the customers. “As a result of King’s recommendations one customer, a retired repairman, had realized and unrealized trading losses of $22,486.27,” FINRA found, “and the second customer, an IT account manager, had realized and unrealized trading losses of $58,050.27.” In connection with these findings, he was issued a two-month suspension, fined $10,000, and ordered to pay restitution of $33,374.31.

Mr. King’s BrokerCheck report also discloses two investor complaints. The most recent, filed in 2022, alleged that as a representative of Newbridge Securities Corporation, he recommended unsuitable investments in unspecified products. The complaint reached a settlement of $20,000.

An earlier investor complaint, filed in 2016, alleged that as a Legend Securities representative, he executed unauthorized trades. In 2017 the complaint reached a settlement of $12,000.

Other current or former Newbridge Securities advisors to receive investor complaints include John Forrester, Kerri Jamison, Joseph Smith Jr., Ivan Gefen, and Greg McLeod. Other current or former Kingswood Capital advisors to receive investor complaints include Thad Bisselle, Brady Fuchs, Richard Siminou, and Phillip Anderson.

According to the Financial Industry Regulatory Authority, Dan King holds 12 years of securities industry experience. Based in San Diego, California, he has been a broker Kingswood Capital Partners since 2023 and an investment advisor with Kingswood Wealth Advisors since 2022. His past registrations include Benchmark Investments (New York, New York; 2019-2023), Newbridge Securities Corporation (New York, New York; 2016-2019), Legend Securities (Melville, New York; 2015-2016), Tryco Securities (Melville, New York; 2015), and Brookville Capital Partners (Melville, New York; 2011-2015). His credentials include the passage of four securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Investment Adviser Law Examination, or Series 65. He is licensed in California, Michigan, New Jersey, New York, Oklahoma, Texas, and Utah. (Information current as of December 15, 2023.)

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