Moloney Securities Co., Inc. Broker Joseph Muller Has Customer Complaint

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Joseph Muller (Muller), currently associated with Moloney Securities Co., Inc., has at least 2 disclosable events. These events include 2 customer complaints, alleging that Muller recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a pending customer complaint with a damage request of $200,000.00 on December 02, 2024.

Suitability/negligence. 2019-2021

FINRA BrokerCheck shows a settled customer complaint with a damage request of $150,000.00 on July 10, 2023.

Suitability/negligence. 2021

Brokers must prioritize their clients’ best interests and recommend only appropriate investments, as mandated by securities laws. In addition, the SEC has promulgated “Regulation Best Interest (Reg BI)” which according to the SEC enhanced the broker-dealer standard of conduct beyond existing suitability obligations and requires broker-dealers to act in the best interest of a retail customer when making a recommendation of any securities transaction or investment strategy involving securities. Regulation Best Interest and the fiduciary standard for investment advisers are drawn from key fiduciary principles that include an obligation to act in the retail investor’s best interest and not to place their own interests ahead of the investor’s interest.

Brokers are obligated to obtain and analyze enough information about a retail investor to reasonably conclude that their account recommendations are in the investor’s best interest. Recommendations cannot be based on materially inaccurate or incomplete information. Every recommendation’s cost and investor details are essential parts of material information. Types of costs that must be considered including account fees, commissions and transaction costs, tax considerations, as well as indirect costs.

In addition to obligation to understand the customer the broker must also investigate the product being sold. FINRA firms have an obligation to conduct a reasonable investigation of the issuer and the securities they recommend in offerings. A brokerage firm has a special relationship with a customer from the fact that in recommending the security, the broker represents to the customer that a reasonable investigation has been made. Thus, without conducting its own reasonable investigation, a brokerage firm cannot depend solely on the issuer for information about a company.

Another protective measure is to require broker discloses. Brokers are required to disclose reportable events such as customer complaints, IRS tax liens, judgments, investigations, terminations, and even criminal matters on FINRA’s BrokerCheck reports for public viewing. FINRA has recognized that recent research shows past regulatory and customer complaint issues can indicate future problems for brokers. FINRA’s Office of the Chief Economist (OCE) published a study showing the predictability of disciplinary and disclosure events based on past similar events. The OCE study showed that past disclosure events, including regulatory actions, customer arbitrations and litigations of brokers, have significant power to predict future investor harm. The data shows that where a member firm on-boards brokers with a significant history of misconduct there is a high likelihood that the broker will continue to engage in similar behavior.

Muller entered the securities industry in 2013. Muller has been registered as a Broker with Moloney Securities Co., Inc. since 2013.

Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.

 

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