The law firm of Oakes & Fosher is presently investigating the possible misconduct of former securities broker Stewart Malloy. According to his publicly available FINRA BrokerCheck report, Stewart Malloy has been the subject of multiple customer disputes.
Stewart Malloy was a New York based securities broker. He worked in the securities industry for thirty-three years. During his long career, he was registered with two different securities firms.
His Registrations
- Merrill Lynch (1982-1996)
- Morgan Stanley (1996-2015)
The Allegations
- In May 1989, a customer alleged that Stewart Malloy recommended unsuitable investments and engaged in unauthorized/unsuitable discretionary trading. This case went to arbitration where the customer was awarded $16,500.
- In April 1993, a customer alleged that Stewart Malloy recommended unsuitable securities and churned their account. This case also went to arbitration where the customer was awarded $8,520 in damages.
- In November 2002, a customer alleged that Stewart Malloy failed to follow instructions and breached his fiduciary duty. This case was settled for $4,000.
- In January 2013, a customer alleged that Stewart Malloy executed unauthorized trades between May of 2011 and July of 2012. This case was settled for $28,000.
- In October 2015, a customer’s children alleged that the energy stocks purchased in his account by Stewart Malloy were highly unsuitable for him. This case was settled for $60,000.
- In August 2016, a customer alleged that Stewart Malloy recommended unsuitable investments. This case was settled for $300,000.
- In August 2018, Stewart Malloy was sanctioned by FINRA. The findings in this matter state that Stewart Malloy failed to comply with FINRA’s investigations into reported allegations against him. Due to these alleged actions, Stewart Malloy was barred by FINRA from acting as a securities broker in any fashion.
What Does This Mean?
Securities brokers are obligated to always act in the best financial interests of their customers. The main part of this means that they are only to ever recommend securities to customers that are suitable for them. They can determine this suitability by analyzing factors that include the customer’s previously stated investment objectives, financial situation, risk tolerance, and more. Securities brokers are not allowed to excuse themselves by claiming they were unaware of an investment’s unsuitability. This is because they are expected to know this by conducting the necessary due diligence.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who think they may have lost money in this fashion may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Stewart Malloy, please contact Oakes & Fosher for a free and private consultation.
