Ken Brown was a popular radio talk show host on Boca Raton,
Brown was also a registered investment adviser and a licensed stockbroker. He was the principal of three investment related businesses, K.W. Brown and Co., 21st Century Advisors Inc., and K.W. Brown Investments. Brown’s popularity as a radio personality brought him hundreds of clients eager for Brown to manage their retirement savings.
The Palm Beach Post is reporting that Federal Magistrate Linnea Johnson has found that Brown and his codefendants, his wife Wendy, and Michael Cimilluca, a day trader affiliated with one of Brown’s companies, defrauded Brown’s clients of approximately $9 million between 2002 and 2006. According to the Post, the judge found that the defendants consistently allocated winning trades to Brown’s accounts, while allocating losing trades to client accounts.
Who can you trust if not the host of two financial radio shows who hobnobbed with the late Louis Rukeyser and the Secretary of the Treasury? The answer is “no one you have not checked out through an SEC-trained source.” One of our central themes on Investor’s Watchblog is that the securities industry is broken, with too few regulators to stop serious damage to baby boomers and senior citizens before it happens. Another is that brokers and investment advisers are highly trained salespeople, equipped to knock down any defenses you raise to saying “yes” to them. Choosing the right adviser is the first and most important decision you can make to protect your nest egg.