Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial advisor Shane DeSherlia (DeSherlia) has at least three disclosable events. These events include three customer complaints alleging that DeSherlia engaged in some form of investment related misconduct in the handling of the client’s accounts. DeSherlia is currently employed by Moloney Securities Co., Inc. (Moloney Securities). DeSherlia’s customer complaints allege that DeSherlia recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
In July 2023 a customer complained that DeSherlia violated the securities laws by alleging that DeSherlia made unsuitable and negligent investment recommendations in the 2019-2020 time period resulting in $500,000 in damages. The claim is currently pending.
In July 2023 a customer complained that DeSherlia violated the securities laws by alleging that DeSherlia made unsuitable and negligent investment recommendations in the 2018-2020 time period resulting in $182,000 in damages. The claim settled for $65,000.
Under the securities laws brokers are obligated to act in their clients’ best interests and provide only suitable recommendations for investments to the client. In addition, the SEC has promulgated “Regulation Best Interest” 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.