← Broker database 2025-06-16
Kevin John Herne Suspended One Year and Fined $5,000 for Failing to Disclose Felony Charge
According to FINRA, Kevin John Herne was fined $5,000 and suspended from association with any FINRA member in all capacities for one year for willfully failing to timely disclose on his Form U4 that he had been charged with a felony.
The felony charge was a single count of Assault - Continuous Violence Against the Family. After FINRA advised Herne's member firm of his felony charge, the firm filed an amended Form U4 disclosing the previously undisclosed felony on Herne's behalf, more than two years after he was originally charged.
FINRA found that Herne repeatedly chose to conceal the information he was required to disclose over the course of approximately two years. Herne knew reporting the felony was required because he had previously disclosed an earlier felony charge, and his firm had reminded him of the requirement in its annual questionnaires. Despite this knowledge, Herne falsely responded to those annual questionnaires that his Form U4 was current.
The failure to disclose felony charges is a serious violation because it deprives customers and firms of material information about a registered representative's background. The disclosure requirements exist specifically so that investors can make informed decisions about who they trust with their finances.
Herne's case is particularly troubling because his concealment was deliberate and sustained. His prior disclosure of an earlier felony charge demonstrates he understood the requirement, and his false responses to annual questionnaires show active efforts to hide the information rather than mere oversight.
The suspension is in effect from June 16, 2025, through June 15, 2026. Because the failure to disclose was found to be willful, it may result in statutory disqualification, which could have additional consequences for Herne's ability to work in the securities industry.