Charles Kenahan delivers the 2017 opening address at Portsmouth Abbey School in Rhode Island
Source: Porstmouth Abbey School
A former Boston-based Merrill Lynch broker who was at the center of two settlements totaling more than $ 66 million has been banned from FINRA.
Charles Kenahan, who has been in the financial services industry since 2002, was permanently banned from the New Hampshire State Securities and Exchange Commission in December as part of a settlement with the state and former New Hampshire Governor Craig Benson and Cabletron Co.-founders.
The Financial Industry Regulatory Authority [FINRA] began investigating the matter after receiving a statement of claims in 2019 from a group of Kenahan customers alleging breaches of sales practice. As a result, an approval, waiver and consent letter signed by Kenahan on January 15 and January 15 was posted on FINRA's website on Monday.
Kenahan, who originally worked on the investigation, stopped providing information and documents and continued his testimony in January at the request of FINRA. In the letter of admission, Kenahan also admitted that he had received the inquiries from FINRA, but refused, according to FINRA, "to provide the information and documents requested or to appear as testimony at any time".
A spokesman for Merrill Lynch declined to comment.
Benson's settlement was the largest monetary sanction in New Hampshire history and the second largest FINRA settlement in at least a decade. The largest deal also involved Kenahan, and was made by Merrill Lynch when the company disbursed $ 40 million to Robert Levine, who co-founded Cabletron Systems with Benson in the early 1980s. Prior to the settlement, Levine had filed a FINRA arbitration complaint against Merrill Lynch and Kenahan alleging that he had sustained more than $ 100 million in damage due to, among other things, his accounts being inexorably mixed up.
With reports from CNBC's Scott Zamost and Scott Cohn