The Silver Law Group in collaboration with the Law Firm of David Chase recently filed a FINRA arbitration claim on behalf of a legally blind 86-year old customer against Moloney Securities Co. and its broker, Joseph Weinrich, which alleges counts of unsuitability, unauthorized trading and churning, and seeks the recovery of his investment losses.
The arbitration complaint alleges that, over the course of at least a five-year period, Weinrich made unsuitable investment recommendations, including oil and gas master limited partnerships, inconsistent with his elderly customer’s financial situation and stated investment goals, which caused significant account losses. The complaint further alleges that Weinrich excessively traded or “churned” the account, which was on margin, to improperly generate significant fees and commissions, and engaged in unauthorized trading. Due to Weinrich’s misconduct, and Moloney Securities Co.’s failure to reasonably supervise, as alleged by the complaint, the customer suffered losses of over $450,000, and paid significant commissions and margin interest.
Unauthorized trading occurs when a stockbroker facilitates a transaction without the permission of the customer in a non-discretionary account.
Churning occurs when the account is effectively controlled by the stockbroker and is traded for the express purpose of generating commissions to the financial detriment of the investor.
Stockbrokers and financial advisors are required to recommend only suitable investments to their customers taking into consideration the customer’s investment objectives, risk tolerance, time horizon, among other factors.
If you invested with Joseph Weinrich and Moloney Securities and have lost money doing so, you may be able to recover some or all of your losses. We are experienced in recovering investor losses due to broker/brokerage firm misconduct and mismanagement through FINRA arbitration.
At The Silver Law Group and The Law Firm Of David Chase, we represent the interests of investors nationwide who have been the victims of investment fraud. Our law firms frequently work together to help maximize investors recovery. If you have questions about your legal rights, please contact us for a free consultation:
Scott Silver ssilver@silverlaw.com or toll-free at (800) 975-4345
David Chase david@davidchaselaw.com or toll-free at (800)-760-0912