A broker fired by First Allied Inc. earlier this year — and with a history of social media snafus — was barred by the
Financial Industry Regulatory Authority Inc.
First Allied fired John Kai in April for violating "numerous firm policies,"
according to his BrokerCheck report, "including communications with the public, undisclosed private securities transaction and outside business activity, borrowing funds from a client, and exercising discretion in client brokerage accounts without the firm's approval."
Mr. Kai allegedly "received client funds under the false pretense of investing the funds for the client without any apparent account opened under the client's name," according to BrokerCheck.
Based in Hilo, Hawaii, Mr. Kai for years gave brief financial tips weekday mornings on local radio,
according to an article by the Hawaii Tribune-Herald. He has been active in local business and community affairs as well as local politics.
Finra suspended Mr. Kai in June and automatically barred him last Tuesday from the securities industry because he did not request the termination of that suspension, according to BrokerCheck.
In an email, Matthew Griffes, a spokesman for First Allied, wrote, "We expect our affiliated advisors to adhere to the highest professional and ethical standards, and we take appropriate action expeditiously when this is not the case. Beyond this, and as a matter of policy, we do not publicly discuss regulatory or legal matters related to individuals no longer affiliated with our firm."
Mr. Kai did not respond to a message left Monday afternoon at his firm, Pinnacle Investment Group.
He started in the securities industry in 1991 and was registered with First Allied from 2010 through this April.
Prior to that, Mr. Kai worked at four other firms, including Commonwealth Financial Network, from where he was permitted to resign in 2010.
He had a history of miscues involving social media, according to BrokerCheck. He resigned from Commonwealth because his "usage of social media was in violation of firm policy designed to ensure firm compliance" with securities industry rules relating to advertising and communications to the public, according to the site.
On his LinkedIn profile, Mr. Kai states he will be host of a yet-to-be-launched podcast called "The Kickass Realtor!"
