Barred-broker-turned-politician sued by Baird

The firm is seeking $344K from the ex-broker - and current Hamilton County, Ohio trustee - for alleged 'unauthorized withdrawals' from a client's account.
JUN 22, 2011
Robert W. Baird & Co. has filed a civil lawsuit against Kevin O'Brien, a former broker, for allegedly stealing hundreds of thousands of dollars from a client. The lawsuit may pave the way for citizens of a Cincinnati suburb to oust Mr. O'Brien as a trustee of their township. According to the suit, which was filed in Hamilton County, Ohio, on April 22, Mr. O'Brien made “unauthorized withdrawals” from a client's account in excess of $300,000 while employed at Baird. Baird paid the client, Ross Brooks, $336,175 in a settlement, according to the complaint. Now, Baird is seeking $344,305 plus interest from Mr. O'Brien. The latest suit comes eight months after the Financial Industry Regulatory Authority Inc. permanently barred Mr. O'Brien from working in the securities industry in any capacity. Mr. O'Brien had been a representative in Cincinnati until 2008. Mr. O'Brien consented to the ban without admitting or denying Finra's findings. In November, he was elected to a four-year term as an Anderson Township trustee. In this position, he and two other trustees manage the town's finances and oversee its fire and police departments, plus payments for its roadways. After learning that Mr. O'Brien had been barred from the securities industry, a group of Anderson Township citizens petitioned the courts to post a higher bond to cover his role as trustee. Mr. O'Brien had posted a $1,000 bond using his own underwriter and paying for it with his own money. In March, the citizens won their petition when Mr. O'Brien agreed to a $25,000 bond — far above the standard $10,000 bond that the other trustees hold, said Courtney A Laginess, an attorney with Keating Muething & Klekamp PLL, who represented the citizens. Calls to Mr. O'Brien, and John Rump, a spokesman for Baird, were not returned by press time. Although Mr. Laginess claims a number of citizens want Mr. O'Brien ousted, he noted that Ohio law gives them no statutory recourse except raising the bond. If the Baird suit prompts prosecutors to file criminal charges against Mr. O'Brien, citizens might be able to get Mr. O'Brien out of office. “With this out there,” said a person familiar with the O'Brien situation, “there shouldn't be any reason that the prosecutors won't file criminal charges.” Julie Wilson, chief assistant prosecutor and a spokeswoman for the Hamilton County Prosector's office, declined to comment.

Latest News

Vistria takes majority stake in Curi Capital in fresh RIA deal
Vistria takes majority stake in Curi Capital in fresh RIA deal

Chicago-based Curi Capital gets new majority owner as $14 billion RIA eyes acquisitions and expanded family office services

WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem
WealthReach, VastAdvisor tie-up takes aim at advisors' cold outreach problem

Partnership pairs organic lead detection with paid ad targeting to help end "spray-and-pray" marketing for growth-seeking advisory firms.

LPL taps Wells Fargo vet as new chief technology and information officer
LPL taps Wells Fargo vet as new chief technology and information officer

Jonathan Lewis joins the wealth management giant as it proceeds with a $2 billion AI and technology push for advisors.

LPL Financial lands $1.6B Conte Wealth Advisors from Cambridge
LPL Financial lands $1.6B Conte Wealth Advisors from Cambridge

A third-generation Pennsylvania firm with 24 advisors and $1.6 billion in client assets has left Cambridge Investment Research.

Confluence Financial Partners secures minority stake from PE firm
Confluence Financial Partners secures minority stake from PE firm

Fast-growing $7.6 billion Pittsburgh-based RIA secures growth capital but retains full management control.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income