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Florida ‘Money Talk’ Radio Talk Show Host Defrauds Clients

 
Ken Brown was a popular radio talk show host on Boca Raton, Florida based WSBR-740 AM.  Ken Brown’s Wall Street Today aired Monday through Friday at 8:40am and Ken Brown’s Afternoon Financial Report aired at 5:05pm.  His guests over the past twenty years have included Governor Jeb Bush, Louis Rukeyser, and Secretary of the Treasury John [...]

 

Ken Brown was a popular radio talk show host on Boca Raton, Florida based WSBR-740 AM.  Ken Brown’s Wall Street Today aired Monday through Friday at 8:40am and Ken Brown’s Afternoon Financial Report aired at 5:05pm.  His guests over the past twenty years have included Governor Jeb Bush, Louis Rukeyser, and Secretary of the Treasury John Snow. 

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.

 

13 Responses to “Florida ‘Money Talk’ Radio Talk Show Host Defrauds Clients”

  1. Betsy Graber says:

    Check out Norm Robins financial show in Boca as well. He lost money for me in my IRA when the stock market was doing well. He never admitted that he was wrong, and kept buying falling daggers. One of the companies he bought for my IRA went bust.
    I should have sued him, but I did not. I just closed my account.

  2. admin says:

    Thanks for the comment, Betsy. I am sorry to hear about your experience with that broker. I am sad to say that it is a very familiar story to me. I deal with people every day who have lost what it took them 40 years to save. It is frightening how vulnerable investors are. Unless you’ve seen what I’ve seen or had your experience, there is no way to appreciate the danger. Tell all your friends about your experience. Maybe you’ll be able to help some of them. Let us know if Investor’s Watchdog can ever help you.

    Blessings,

    Pat Huddleston
    CEO, Investor’s Watchdog

  3. Betsy Graber says:

    Thank you for your reply and sympathy, Pat. I just found your response while researching more about Ken Brown. What a travesty!
    Betsy

  4. Betsy Graber says:

    I can’t understand why none of the callers to the other local Florida financial shows on Monet Talk Radio are not asking on the air what happened to Ken Brown? Are they being silenced before asking their stock question?. Many callers go back and forth between these broker financial radio talk hosts.
    I’m sure my posts are being seen by some of the brokers in question. It could be dangerous for me.
    Can’t imagine why others have not found your website while searching for Ken Brown.
    Betsy

  5. john grey says:

    I am stunned. Very sad.

    I listened to his radio show for years (but never opened an account).

    He made a few bad recommendations, but MANY good ones. He recommended oil and gold years ago, which saved my portfolio.

    I really miss his radio show.

  6. admin says:

    Thanks for the comment. I am glad that you avoided the losses that so many others suffered.

  7. All I can say is that he was a great convincer. He knew how to manipulate and impress the public with his savvy ways. I was the stupid one, after saving over 40 years of hard labor I trusted him through my ex-husband who believed that he would make us at the time over a million dollars. My ex-husband was a control freak and I finally got rid of him as well. I lost over 350,000 thousand dollars with this man’s lies. I was an foolish to let him manage my financial portfolio, well not any more. If I lose any money in the stock market I can only blame myself at present, but this was a lesson learned and a very hard one at that. I hope that the monies he stoled from his clients can be replenished, but I know that won’t happen. The lawyers will get everything now.
    I hope that Mr. Ken Brown and his family get back what he did to all his clients the suffering and hardships he put all of us through. What comes around goes around. He should not be allowed to sell securities and he should serve time in jail just like the other CEO’s of these large corporations that stole monies which did not belong to them. The greed that these people like Mr. Brown possess should really send a message to the lay person who wants to earn some extra income to KEEP AWAY. THIS IS A REAL LESSON LEARNED.

  8. Dave Martin says:

    I came across this website while checking on any recent news regarding Ken Brown. I was interested in seeing the comments about Norm Robbins. I’ve come to the conclusion these “Investment Advisors” could not survive unless they were on the radio touting their services. As one of their competitors said in regard to Norm Robbins, “….it’s a revolving door…” They have to stay on the radio to aquire new clients for the disgruntled ones who finally catch on and eventually leave.

    Robbins and his son, IMHO, are two boring and untalented brokers whose performance in a good market is mediore, and in a poor market, a disaster. When I was with Robbins, he recommended BSX five times for the portfolio….what a disaster…Have you ever heard him on the radio say he “…just bought some for his own account….”….I think it may have been a whole ten shares, just so he could say it.

    Bottom line: From April of 2004 to April of 2006, my performance with was flat, less than one percent gain in the portfolio after two decent years in the overall market. The only reason I did not have a loosing performance was due to dividends and interest that accumulated in the account. I never took out a dime during this time frame. Final analysis of Robbins and son….Neither could find ice cream at a Dairy Queen.

    Dave Martin

  9. Mort Telford says:

    The whole Ken Brown affair is a disgrace. I used to listen to him regularly and even attended several of his seminars, though I never became a client. He did not come off as anything less than honest and sincere in his approach to the markets and business. For many years, until his death in December 2006 at age 80, the radio show featured the analysis and commentary of a distinguished market technician named Charles Belida. In addition to Belida’s regular commentary, Ken Brown frequently interviewed many prominent individuals involved in the world of finance. It really is incredible that while Brown was broadcasting twice daily, he was also involved in the cherry-picking scheme described in the court documents.

    http://www.kwbrownsecdistribution.com/

  10. kim says:

    did anyone ever stop to consider maybe he was unaware of what his employees did? That was the case.. he suffered due to anothers greed. He still is a genious in investing ideas.. dont let the media fool you!!!

  11. Erica says:

    Kim’s comments are designed to create a revisionist history that takes the blame off of Brown and his equally detestable wife and somehow blame a greedy, low-level employee. Nothing took place at K.W. Brown Investments that Ken did not personally authorize and handsomely profit from.

  12. Steven says:

    I always liked Charles Belida. His feistiness kept the show honest when he argued a topic and ended it with Mr. Brown!!!!!! I had an appointment to see him but Ken was a no show. I made another appointment and opened an account which he invested in Aim Mutual Funds. I went to him because he could trade in and out of the market and save me the downswings. There was not much activity on his part maybe because my account was so small. When I decided to transfer out, an employee on the phone said to me, “you don’t like us anymore”. TODAY WAS A GOOD DAY, TOMORROW WILL BE BETTER

  13. Steven says:

    Before a seminar Brown would scream out WHAT TIME IS IT. The answer IT”S TIME TO GET RICH AND RICHER IN AMERICA. We didn’t know he meant himself.

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