According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Marcus Moon (Moon), previously associated with Nylife Securities LLC, has at least 2 disclosable events. These events include one customer complaint, one regulatory event, alleging that Moon recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on May 18, 2023.
The Securities and Exchange Commission (‘Commission’) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (‘Exchange Act’) and Section 203(f) of the Investment Advisers Act of 1940 (‘Advisers Act’) against Marcus K. Moon (‘Moon’ or ‘Respondent’). The Commission finds that on May 8, 2023, a final judgment was entered by consent against Moon, permanently enjoining him from future violations of Section 15(a)(1) of the Exchange Act, Sections 17(a)(2) and (3) of the Securities Act of 1933, and Section 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Marcus K. Moon, Civil Action Number 23-cv-60715-RS, in the United States District Court for the Southern District of Florida. The Commission’s complaint alleged that from May 2020 through February 2021, Moon used the unregistered entity Increase Financial to enter into brokerage agreements with nine investors, provide them with investment advice for a fee, and ‘sell away’ from his employer outside of its knowledge and supervision. The complaint further alleged that Moon made multiple misstatements to investors, predominantly targeting African-American investors of the Christian faith, about Increase’s status as a purported broker-dealer, and held himself out as a ‘financial services professional’ who ‘holds various registrations in the financial services space.’ Moon directed investors to open accounts with online broker-dealers and to provide him with their passwords, so that he could trade in their individual accounts on their behalf. In total, Moon accessed at least 18 different online brokerage accounts owned by nine investors, and conducted hundreds of trades that resulted in approximately $31,800 in losses; these same investors paid Moon $3,000 in fees for his services.
FINRA BrokerCheck shows a settled customer complaint on November 01, 2022.
Customer alleges that from May 2020 – October 2020, RR Marcus Moon had represented him for stock investments via an E-Trade account. Customer further alleges that he lost approximately $20,000 of his investment and was told by RR Moon that the funds would be returned to the customer via trading in stocks and cryptocurrency, however these funds were never regained,
In the financial industry advisors must meet the requirements of the SEC’s Regulation Best Interest (Reg BI) in providing investment advice and services. Reg BI established a ‘best interest’ standard for brokerage firms and registered representatives. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts.
Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. The SEC has stated that Reg BI is drawn from fiduciary principles that are common to both brokers and investment advisors including an obligation to act in the investor’s best interest and prohibiting an advisor from placing their own interests ahead of the investor’s. There are different sub-parts of the Reg BI rule that financial professionals must comply with when providing advice. Among those is the duty of care obligation that mandates associated persons to evaluate investment options, review and be knowledgeable the risks and rewards of the investment or service, compare alternative investment products, and ensure that the overall investment strategy aligns with the client’s goals and is in their best interests.
Next, the advisor must have a reasonable understanding of the specific retail investor’s investment profile. The customer’s profile information generally includes an investor’s financial situation and needs; investments; assets and debts; marital status; tax status; age; investment time horizon; liquidity needs; risk tolerance; investment experience; investment objectives and financial goals; and any other information the retail investor may disclose in connection with the recommendation or advice. Finally, the advisor must use their knowledge of the first two elements to consider reasonably available investment option alternatives and come to the conclusion that there is a reasonable basis to believe that the recommendation or advice being provided is in the retail investor’s best interest. An advisor must understand the type of account, securities, and their client in order to meet their care obligations. The type of securities account has the potential to greatly affect retail customers’ costs and investment returns. Different types of securities accounts can offer different features, products, or services, and not all types of accounts or services would be in every investor’s best interest.
Moon has been in the securities industry for more than 3 years. Moon has been registered as a Broker with Nylife Securities LLC since 2017.
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.