The U.S. Securities and Exchange Commission (SEC) 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 of 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 from York, Pennsylvania—were terminated because they had violated the policies and procedures of Waddell & Reed, a dually registered adviser/broker-dealer, on February 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 advisers to more than 100 clients who collectively had over $27 million in assets under management at Waddell & Reed.