Wis. securities dealer barred from industry
Panel finds broker made fraudulent sales to elderly
PRAIRIE DU SAC, Wis. — A securities dealer in southern Wisconsin has been barred from the industry after a regulatory panel said he made fraudulent sales to vulnerable elderly customers.
Christopher D. Kline was a broker in the Prairie du Sac office of Brookstone Securities.
He and Brookstone’s owner were accused of selling risky mortgage obligations to unsophisticated investors who thought they were buying government-guaranteed bonds.
Kline and the company were investigated by the Financial Industry Regulatory Authority. In a ruling released Friday, the panel ordered Kline, the company, and its owner to pay $2.6 million in fines and restitution. Kline and the owner were also barred from the industry.
Kline told the Wisconsin State Journal the allegations and decision were flawed. The ruling has been appealed.
Brookstone has since closed.