FINRA Suspends Broker Todd Kling After Excessive Trading

Todd Kling (Todd Franklin Kling CRD# 3034284) is a currently registered broker and investment advisor employed with Joseph Stone Capital L.L.C. (CRD#: 159744) in New York, NY. His previous employers include Royal Alliance Associates, Inc. (CRD#:23131), First Midwest Securities, Inc. (CRD#:21786), and FMSI Advisers (CRD#:21786), also of New York, NY. His first employer, First Republic Group, LLC (CRD#: 39781), was expelled by FINRA on 9/23/2009. He has been in the industry since 1999.

According to a FINRA disciplinary action dated 12/17/2021, Kling was found to have excessively and unsuitably traded one customer’s account. This particular client was not only a retired psychiatrist but also a senior investor. Between March 2018 and November 2019, Kling recommended that the client place a total of 115 trades in his account. The client accepted Kling’s recommendations and made the trades.

The customer’s account had an average month end equity of $5,414,465, resulting in an annualized turnover rate of more than 12. The trades recommended by Kling caused this customer to pay commissions, trading costs and margin interests that totaled $153,879.00. This trading resulted in an annualized cost to equity ratio of more than 35%. For the client to break even, the customer’s account would have had to grow by more than 35% annually just to reach the “break-even point.”

Because these trades were excessive, FINRA imposed a three-month suspension from any association with a member broker, which ends on 4/17/2022.

Kling also has four tax liens in his record:

1. A lien filed on March 6th, 2020, for $14,547.53 for tax years 2017 and 2018
2. A lien filed on July 3rd, 2018, for $8,043.70. This total was four. 2015 and 2016
3. A lien filed on May 13th, 2016, in the amount of $18,495.38 for taxes in 2014
4. A lien filed on April 21st, 2015, for $52,976.09 for disallowances for tax years 2008 and 2009

Kling indicates that he is up to date on all his tax filings and payment plans.

Did You Invest With Todd Kling?

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