Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Christopher Mccoy (Mccoy), previously associated with Calton & Associates, INC., has at least 4 disclosable events. These events include one customer complaint, 3 regulatory events, alleging that Mccoy recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on July 16, 2025.
Respondent admits that he provided materially untrue and incorrect information, within the meaning of Section 211 0(a)(2) of the Insurance Law, on his renewal application to act as an agent pursuant to Section 2103(a) of the Insurance Law, submitted to the Department on or about March 29, 2021, in that he failed to disclose that he was named or involved in two FINRA arbitration proceedings. Respondent hereby waives his right to notice and a hearing on said charges and agrees, in lieu of any other disciplinary action which might be taken by the Department in consequence of the foregoing, to the imposition of a penalty in the sum of Seven Hundred Fifty Dollars ($750.00}, receipt of which is hereby acknowledged. Respondent agrees to take all necessary steps to prevent the recurrence of similar violations and acknowledges that this Stipulation and any admission herein\, contained May be used against him if the Department, for any reason other than the specific acts herein considered, institutes disciplinary action.
FINRA BrokerCheck shows a final customer complaint on April 11, 2025.
WHEREAS, CHRISTOPHER JOSEPH MCCOY, national producer number #16972680, holds resident Producer and resident Fraternal Agent licenses issued by the State of Connecticut Insurance Department (‘Department’). WHEREAS, the Respondent submitted a renewal Insurance Producer license application to the Department on or around March 19, 2025, in which he failed to disclose a previous FINRA action taken against him. WHEREAS, the Respondent also failed to report this FINRA action to the Department within 30 days as required. WHEREAS, the Department alleges that the Respondent’s conduct violates Sections 38a-702k , 38a-702s and 38a-702o of the Connecticut General Statutes and constitutes cause pursuant to Sections 38a-702k and 38a-774 of the Connectjcut General Statutes to suspend, deny or revoke a license and/or impose a fine. WHEREAS, the Respondent admits the allegations contained in this Stipulation and Consent Order.
FINRA BrokerCheck shows a final customer complaint on April 16, 2024.
Without admitting or denying the findings, McCoy consented to the sanctions and to the entry of findings that he exercised discretion in customer accounts, some of whom were seniors, without prior written authorization from the customers, or permission from his member firm. The findings stated that although McCoy discussed investment strategy with the customers, he did not speak with them on the days of the trades. In addition, McCoy falsely attested in compliance questionnaires that he had not exercised discretionary trading authority over his customer’s accounts.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $350,000.00 on November 23, 2020.
Unsuitable, Breach of Fiduciary Duty, Negligence, Violations of State and Securities Laws. Dates range from 2012 – 2020.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This standard applies when a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or accounts. 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.
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 Reg BI rule applies a fiduciary principles and requires an associated person to act in the retail investor’s “best interests” while barring the broker from placing their own financial interests and compensation incentives ahead of the investor’s best interest. 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. In addition to specific investments being recommended, under Reg BI, a broker must also understand the type of account that their client would need in order to meet their care obligations. The SEC has stated that the type of securities account an investor has can greatly affect a customers’ costs and overall investment returns. Further, different account types can offer and support different features, products, securities, or services, and account type would not be appropriately applied in a one size fits all manner.
Mccoy has been in the securities industry for more than 22 years. Mccoy has been registered as a Broker with Calton & Associates, INC. since 2012.
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.