Moloney Securities Co. Fined for Failing to Supervise John McKinstry
Have you lost money with financial advisor John McKinstry of St. Louis, Missouri? We are continuing to look into allegations made by FINRA, the Financial Industry Regulatory Authority, against John R. McKinstry, Jr. FINRA had previously kicked McKinstry out of the securities industry for selling unsuitable investments to investors.
In May 2020, FINRA also fined McKinstry’s former brokerage firm, Moloney Securities, for failing to adequately supervise him. FINRA alleged that McKinstry recommended numerous oil and gas investments to customers, and that Moloney Securities’ electronic surveillance system did not flag the transactions. FINRA further alleged that Moloney Securities’ supervisory systems was not equipped to reasonably surveil for concentration in high-risk products, and that Moloney did not have reasonable guidance on how to conduct reviews for these suitability concerns.
John McKinstry was a financial advisor and registered representative of Moloney Securities Co., Inc. from 2004 to August 2015. He worked at a branch office in St. Louis, Missouri. McKinstry has been the subject of seven customer complaints on his record, including for the sale of master limited partnerships in oil and gas.
Brokerage firms like Moloney Securities have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; Ann Arbor, Michigan; and Phoenix, Arizona. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in Missouri. Our attorneys have represented over one thousand investors against many brokerage firms in the past.