Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Gregory Mccloskey (Mccloskey), previously associated with Westpark Capital, INC., has at least 4 disclosable events. These events include 4 customer complaints, alleging that Mccloskey recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $200,000.00 on November 22, 2024.
Customers allege that their investment in GWG constituted material misrepresentations, a failure to conduct reasonable due diligence, a breach of fiduciary duty to act in the claimants’ best interest, unsuitable investments, failure to supervise, negligence and violation of state and federal securities laws.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $50,000.00 on October 24, 2023.
The total damages are $50,000, $25,000 coming from GWG, and $25,000 coming from Greenfield. The client alleges Violations of Federal Securities Laws, Violations of California Securities Laws, Breach of Contract, Fraud, Breach of fiduciary duty, Negligence, and Gross Negligence.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $100,000.00 on September 26, 2023.
Breach of Contract and warranties, promissory estoppel, Violation of State Securities Statutes, Breach of Fiduciary Duty, and Misrepresentation.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $199,000.00 on September 25, 2023.
Negligence, Breach of Fiduciary Duty, Breach of Contract, Unjust Enrichment, and Violation of California’s Securities Act
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. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.
There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which requires brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations includes three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions. 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.
Finally, an advisor must also analyze the specific account features offered and determine whether their client can benefit from them in order to meet their care obligations. While securities and investments come with costs that must be considered, the type of securities account also has changes the cost equation for the investor and can change the retail customers’ future investment returns. The associated person must consider the different types of securities accounts for their client and determine whether or not the cost or features are reasonably needed for the client or if the customer’s current account costs and features are superior to solutions available to the advisor. In any event, the type of account and services recommended must be in the investor’s best interest.
Mccloskey has been in the securities industry for more than 21 years. Mccloskey has been registered as a Broker with Westpark Capital, INC. since 2016.
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.