FINRA filed a complaint against former National Securities Corporation (San Diego, CA) broker Kyle Patrick Harrington and assistant Linda Milberger accusing the duo of concealing Harrington's conversion of customer funds and engaging in private securities transactions away from the firm.
Harrington is the founder and managing partner of Harrington Capital Management, LLC, a bicoastal corporation located in the New York and greater San Diego areas. He has also appeared as a guest on the Fox News Channel and Newsmax TV, and previously served as host of the Harrington Hour on radio station KCBQ (1170 AM) in San Diego. Click here to see a few of FINRA's previous disciplinary actions levied against financial-oriented radio hosts, including Barry Armstrong, who ran a "'grossly deceptive' radio campaign targeted at vulnerable senior citizens."
OHO Disciplinary Proceeding #2015047303901
According to the present complaint, Harrington converted $20,000 from a firm customer by convincing her to authorize a wire transfer to a firm of Harrington's designation for a purported investment. Milberger, without the customer's knowledge or consent, allegedly altered the wire transfer request form and submitted the doctored form as if it was authentic.
Harrington also purportedly sold over 300,000 shares of restricted stock from company Islet Sciences, Inc. for approximately $276,000, and failed to disclose the transactions or his role as seller to National Securities Corp. FINRA took it a step further in the complaint, writing that Harrington "actively attempted to conceal [the transactions]" by submitting falsified records to National Securities Corp and created and provided two falsified vacation rental agreements for a property he owned in La Jolla, California in order to justify the payments he received for his Islet stock.
FINRA found that as the regulator's investigation began to uncover Harrington's $20,000 conversion, Harrington purportedly contacted the customer and asked her to sign a document stating that she had stayed at Harrington's La Jolla property, as an apparent attempt to explain the transfer of the $20,000 he had converted.
Harrington is charged with conversion of customer funds, attempting to conceal this conversion, failure to disclose private securities transactions, and misstatements/falsification of documents in connection with National Securities Corp's internal investigation, while Milberger is charged with falsification of wire request forms and provision of falsified records to a FINRA-member firm. Both Harrington and Milberger are accused of providing false documents and information to FINRA.
Harrington (CRD #2282328) has a lengthy history of jumping between firms. Since 2007 for instance, Harrington has been associated with Deutsche Bank Securities (San Francisco), Robert B. Ausdal & Co. Inc. (La Jolla), First Allied Securities (La Jolla), Matrix Capital Group (New York), Bannockburn Partners, LLC (Syosset, NY), National Securities Corporation (San Diego) and Aurora Capital LLC (Bridgehampton, NY).
He also has a lengthy history of disciplinary issues, compiling 15 disclosures in his BrokerCheck report since 2001, including terminations from Matrix Capital Group (failed to timely disclose a reportable event) and National Securities Corp (conversion of client funds). Previously settled customer disputes include allegations of unauthorized trading, excessive commissions, misrepresentation, and omissions, while an additional arbitration award found that Harrington engaged in negligent misrepresentation and breach of fiduciary duty to the tune of $150,000 in damages.
If you have invested with ex-National Securities Corporation broker Kyle Patrick Harrington or with any representative or financial adviser whose conversion of funds or private securities transactions sold away from a firm has proven harmful to your investments or interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.