The U.S. Securities and Exchange Commission filed a complaint last Wednesday in Pennsylvania Middle District Court targeting two defendants who had controlled $27 million in assets for allegedly defrauding investors. The suit accuses Kevin John Kane and Sean Michael Kane of failing to disclose to investors that they had been terminated from advisory firm Waddell & Reed  and were impersonating certain clients to make securities transactions.

The father and son – Kevin John Kane, 66, and Sean Michael Kane, 36, both investment adviser representatives and registered representatives and both of York, Pennsylvania – were terminated because they had violated the policies and procedures of Waddell & Reed, a dually registered advisor/broker-dealer, on Feb. 23, 2021, the SEC said in a complaint.

As investment adviser representatives, both father and son provided, and were compensated for providing financial planning and advice to clients, including advice as to the advisability of investing in, purchasing or selling securities, according to the SEC complaint. As of February 10, 2020, the Kanes were investment advisors to over 100 clients who collectively had over $27 million in assets under management at Waddell & Reed.