The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Rick Konecny. According to his publicly available FINRA BrokerCheck report, Rick Konecny has been the subject of multiple customer complaints.

Rick Konecny was an Illinois based securities broker. He worked in the securities industry for twenty-six years. During his career, he was registered with twelve different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Blinder, Robinson & Co. (1987-1988)
  • The Prudential Insurance Company of America (1988)
  • Pruco Securities Corporation (1988)
  • Berthel, Fisher & Fleischman Financial Services (1989)
  • Dickinson & Co. (1992)
  • Heartland Investment Associates (1991-1992)
  • Mathews, Holmquist & Co. (1992-1993)
  • Prudential Securities Incorporated (1993-1995)
  • Morgan Stanley (1995-2008)
  • UBS Financial Services (2008-2013)
  • J.P. Morgan Securities (2013-2016)
  • National Securities Corporation (2016)

The Allegations

  • In March 2016, a customer alleged that Rick Konecny made unsuitable investment recommendations, executed unauthorized trades, and over-concentrated her investments in the energy sector. The alleged transgressions taking place between 2013 and 2015. This case was settled for $375,000 in damages.
  • In June 2016, a customer alleged that Rick Konecny affected transactions without customer’s advance knowledge or authorization. The customer alleged that these investments were unsuitable. This case was settled for $180,000 in damages.
  • In April 2017, a customer alleged that Rick Konecny made unsuitable investment recommendations. This case was settled for $315,000 in damages.
  • In August 2017, customers alleged that Rick Konecny placed them in unsuitable investments, over-concentrated their account, and made material misrepresentations. These alleged transgressions were concerning investments in the energy sector. This case was settled for $33,253 in damages.
  • Also in August 2017, a customer alleged that Rick Konecny placed them in unsuitable investments, over-concentrated their account, and engaged in unauthorized margin trading. This case was settled for $750,000 in damages.
  • In January 2018, a customer alleged that Rick Konecny invested their account in an unsuitable and over-concentrated manner. This case is currently pending. The customer is seeking $70,660 in damages.
  • In March 2018, after allegedly refusing to comply with a settlement agreement, Rick Konecny was indefinitely suspended by FINRA from acting as a securities broker in any fashion.
  • In April 2018, customers alleged that Rick Konecny made unsuitable investment recommendations concerning high-risk mining equities. This case was settled for $33,625 in damages.

What Does This Mean?

Over-concentration can cause serious financial detriment to customers. When securities brokers like Rick Konecny over-concentrate their customer’s accounts in a single security, the investor’s financial success is completely dependent on the success of that one security. This is a very single minded investment strategy that often results in loss. Over-concentration also occurs when brokers like Konecny place their customers in a multitude of securities; however, all of the chosen investments are incredibly risky. A strategy like this is contrary to most investor’s objectives. Successful investors have their portfolios diversified among a wide range of securities that all encompass varying degrees of risk. When the riskier securities are not successful, the more conservative securities held in the account keep the investor from losing all their money.

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 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 Rick Konecny, please contact Oakes & Fosher for a free and private consultation.