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.

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.