Securities Lawyers Blog
The securities attorneys at Gana Weinstein LLP have been investigating J.P. Morgan Securities LLC (J.P. Morgan) broker Jeffrey Mcaleney (Mcaleney). According to BrokerCheck Records, Mcaleney has been subject to 10 customer disputes, the majority of which concern unsuitable equity, preferred stock, funds, and limited partnership investments.
In October 2017, a customer alleged that from 2007 to 2016, Mcaleney recommended investments that were unsuitable because they were contrary to the customer’s stated goals. The customer requested $313,909.22 in damages.
In October 2017 another customer similarly alleged that from 2014 to 2016, Mcaleney was recommending unsuitable investments that didn’t align with the customer’s needs and goals.
In March 2014, a customer alleged that Mcaleney placed the customer into risky high-yield closed-end funds, equities, and preferred stocks which were risky and volatile and unsuitable to the customer. The customer also alleged that the portfolio was over-concentrated and that the risks of the investment weren’t properly disclosed. The customer requested $200,000 in damages.
All advisers are obligated to make suitable investment recommendations for their clients by following certain criteria. For an investment recommendation to be suitable, the broker must have first have a reasonable basis for recommending the security/product based off the broker’s research of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs. Investment objectives and needs include the clients net worth, life savings, age, investor experience, and so on.
Mcaleney’s record shows an unusual amount of complaints in comparison to his peers. According to newsources, only about 7.3% of financial advisors have any type of disclosure event on their records among brokers employed from 2005 to 2015. However, studies have found that in certain parts of California, New York or Florida, the rates of disclosure go up to as high as 18%. Brokers must publicly disclose reportable events on their CRD customer complaints, IRS tax liens, judgments, investigations, and even criminal matters.
Mcaleney entered the securities industry in 1981 and has been registered with J.P. Morgan since 2005. From March 2002 to December 2005, Mcaleney was registered with RBC Dain Rauscher Inc. From September 1999 to March 2002, Mcaleney was registered with Tucker Anthony Incorporated. From October 1981 to September 1999, Mcaleney was registered with Gibraltar Securities Co.
Investors who have suffered losses may be able recover their losses through securities arbitration. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of unsuitable investments and brokerage firms failure to supervise their representatives. Our consultations are free of charge and the firm is only compensated if you recover