According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Kimberly Kitts (Kitts), formerly associated with Royal Alliance Associates, Inc. (Royal Alliance) in Palmer, Massachusetts was terminated for cause by Royal Alliance concerning allegations that she engaged in misappropriation of funds. Royal Alliance stated that it received correspondence from a client that Kitts had converted or misappropriated funds. In addition, Kitts has been subject to four customer complaints.
In December 2017, FINRA barred Kitts from the securities industry when she failed to respond to requests for information concerning her activities.
At this time it is unclear the extent and nature of Kitts’ alleged misappropriation of funds, outside business activities, or private securities transactions. Kitts disclosed a number of outside business activities including Marquis Consulting which is described as an investment related activity involved in business valuation. Kitts also disclosed involvement as a trustee for an estate and also a volunteer for a non-profit company called Center for Coastal Studies.
The allegations concerning conversion are often accompanied by claims of engaging in outside business activities and private securities transactions – a practice known in the industry as “selling away” – a serious violation of the securities laws.