Litigation Release No. 25655 / March 2, 2023
Securities and Exchange Commission v. Kevin J. Kane and Sean M. Kane, No. 1:23-cv-00371 (M.D. Pa. filed Mar. 1, 2023)
The Securities and Exchange Commission announced that it filed fraud charges yesterday against the father and son financial advisory team of Kevin Kane and Sean Kane of York, Pennsylvania.
The SEC’s complaint alleges that the Kanes were terminated for cause from a dually-registered investment adviser and broker-dealer for multiple violations of the firm’s policies and procedures. The SEC’s complaint further alleges that, following their terminations, in an effort to convince certain of their clients to join them at a new firm, the Kanes falsely represented to clients that they left their former firm voluntarily. The Kanes also allegedly misrepresented to certain clients that they were still associated with their former firm and could still access client accounts. In addition, the complaint alleges that, to further their deceit, the Kanes impersonated certain clients in phone calls to their former firm in order to execute transactions in their clients’ accounts.
The SEC’s complaint, filed in federal district court in Pennsylvania, charges the Kanes with violating the antifraud provisions of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The SEC seeks permanent injunctions and civil penalties.
The SEC’s investigation was led by Michael Cates, and supervised by Ian Karpel, Nicholas Heinke, and Jason Burt. The litigation will be led by Leslie Hughes, and supervised by Gregory Kasper, Mr. Heinke, and Mr. Burt.