According to FINRA, Kelly Ray Moore of Houston, Texas was barred from association with any FINRA member in all capacities for refusing to provide information and documents requested during a FINRA investigation.

The investigation concerned allegations that Moore had engaged in short-term trading of Class A mutual funds. This type of trading activity can be harmful to fund shareholders and is generally contrary to the design and purpose of Class A shares.

Class A mutual fund shares typically charge an upfront sales charge (front-end load) and are designed for long-term investors. The sales charge is meant to be amortized over time through lower ongoing expenses. When brokers engage in short-term trading of Class A shares, customers pay the upfront sales charge repeatedly without receiving the long-term benefit the share class is designed to provide.

Such trading can generate significant commissions for brokers while creating unnecessary costs for customers. If the same amount were invested and held long-term, or if a more appropriate share class were used, the customer would pay substantially less in total fees.

When Moore refused to provide the requested information and documents, FINRA was unable to determine the full scope of the alleged short-term trading activity or whether customers were harmed.

Investors who held accounts with Moore should review their historical statements for patterns of mutual fund purchases and sales. If you notice repeated purchases and sales of Class A mutual fund shares within short timeframes, you may want to consult with a securities attorney to determine whether you have a claim for unsuitable recommendations or excessive trading.