Securities Lawyers Blog
We represent clients of financial advisors and brokerage firms in investment disputes against their firms, such as McDonald Partners LLC. Our services cover a wide spectrum of broker misconduct, including unsuitable investments, failure to supervise, and losses in various investment products. Our firm can analyze your brokerage accounts, determine the extent of your investment losses, and understand the issues and remedies available.
McDonald Partners is a wealth management firm and broker-dealer offering discretionary and non-discretionary investment management, financial planning, pension consulting, and brokerage services, including an in-house large-cap Core strategy and RBC-sponsored advisory programs. Formed in Ohio in 2005 and based on East 9th Street in Cleveland, the firm operates multiple offices and serves individuals, high-net-worth clients, banks, pension plans, trusts, estates, foundations, charitable organizations, and businesses.
McDonald Partners LLC – By the Numbers:
- CRD #: 135414
- Regulatory Events: 5
- Arbitration Events: 1
- Broker Employees: 30
McDonald Partners LLC – Investment Advisors:
- SEC #: 64294
- Assets Under Management: $1,279,273,513
- ADV Form Employee: 29
McDonald Partners LLC – In the News:
FINRA v. McDonald Partners LLC (Case #2019060692401) – In May 2019, MDP approved a private-placement offering to its customers without having first conducted reasonable due diligence of the offering, its terms, and the potential risks it presented to investors. MDP failed to reasonably consider certain aspects of this offering, including the issuer’s initial financing arrangement and the terms of the offering’s contingency provision. By failing to conduct reasonable due diligence, MDP violated FINRA rules 3110 and 2010. MDP also failed to specify a date by which the contingency in this offering had to be met and allowed the issuer to use non-bona-fide sales to meet the offering contingency. Through this conduct, MDP willfully violated Exchange Act Rule 10b-9 and violated FINRA Rule 2010. Additionally, for more than four weeks in May and June 2019, MDP operated a securities business while failing to maintain its minimum required net capital and therefore violated Section 15(c) of the Exchange Act, Exchange Act Rule 15c3-1, and FINRA Rules 4110(b)(1) and 2010.
FINRA v. McDonald Partners LLC (Case #2017052419301) – From November 1, 2015 through June 1, 2017, McDonald Partners failed to report certain municipal securities transactions to the MSRB’s Real-Time Transaction Reporting System (“RTRS”), in violation of MSRB Rule G-14. From May 31, 2017 through June 29, 2017, McDonald Partners violated SEC Rule 15c3-1 and FINRA Rule 2010 for conducting a securities business while failing to maintain its required minimum net capital. McDonald Partners also violated SEC Rule 17a-3(a)(11) and FINRA Rules 4511 and 2010 by preparing an inaccurate general ledger, trial ledger, and net capital computation.
FINRA v. McDonald Partners LLC (Case #2015043649601) – In September 2013 and July 2014, McDonald acted as a placement agent in connection with two separate contingent offerings of securities, issued by companies affiliated with the Firm. In the first offering, McDonald released investors’ funds from escrow after having used an interim loan to satisfy a portion of the contingency amount. By engaging in such conduct, the Firm willfully violated Securities Exchange Act (“SEA”) Rule 10b-9 and FINRA Rule 2010. In the second offering, the Firm released investors’ funds from escrow prior to meeting the offering’s stated minimum contingency. This conduct was also a willful violation of SEA Rule 10b-9 and FINRA Rule 2010. Additionally, in the second offering, the Firm: 1) allowed the funds to be disbursed prior to the contingency occurring, in violation of SEA Rule 15c2-4 and FINRA Rule 2010; and 2) circulated a communication to the public that misstated the contingency amount in the offering memorandum, in violation of FINRA Rules 2210(d)(1)(B) and 2010. Further, between September 2013 and February 2015, the Firm failed to report certain municipal securities transactions to the Municipal Securities Rulemaking Board (“MSRB”), in violation of MSRB Rule G-14.
Our attorneys have successfully represented hundreds of investors in investment disputes with their brokers and brokerage firms. Our consultations are free and we welcome all inquiries.