Investors potentially sustained damages through securities broker Christopher Joseph McCoy [CRD: 4113108, Montclair, New Jersey], according to disclosures on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Not only that, but FINRA sanctioned him for unauthorized trading. Evidently, Christopher McCoy worked for Calton Associates Inc. from August 31, 2012, to December 20, 2022. Below, you’ll find a summary of McCoy’s disclosures.
FINRA Suspended McCoy For Discretionary Trading
Specifically, on April 16, 2024, FINRA issued Case: 2020067072101 sanctioning Christopher McCoy. Specifically, McCoy was fined $5,000 and received a one-month suspension as a securities broker and in other capacities involving FINRA member firms. Notably, FINRA alleged that McCoy exercised discretion in client accounts without prior written authorization from the clients or permission from his employer.
Evidently, December 20, 2022, Calton Associates Inc. filed a Uniform Termination Notice for Securities Industry Registration (Form U5) disclosing that McCoy had voluntarily resigned. In November 2020, one of McCoy’s clients filed a FINRA arbitration against Calton Associates Inc. arising out of some of the trades described here. That arbitration settled in July 2021. FINRA’s disciplinary action against McCoy originated from the client arbitration complaint filed with FINRA.
Supposedly, from May 2015 through June 2019, while at Calton Associates Inc., McCoy exercised discretion in eight brokerage accounts of a total of six firm clients, three of whom were seniors. Although McCoy discussed a strategy with the clients, he reportedly did not speak with the clients on the days of the trades. Notably, the regulator stated that he executed 200 transactions without communicating with clients beforehand.
Calton Associates Inc.'s procedures prohibited discretionary transactions in client accounts without written authority from the client and prior approval from the firm. FINRA says that McCoy did not have written authorization from the clients or permission from Calton Associates Inc. to exercise discretion in the accounts.
In addition, McCoy allegedly falsely attested in five compliance questionnaires that he had not used discretionary trading authority over his client's accounts. Therefore, McCoy violated FINRA Rules 3260(b) and 2010 in addition to NASD Rule 2510(b).
Calton Associates Inc. Investor Accused Christopher McCoy Of Unsuitable Recommendations
Notably, a Calton Associates Inc. client filed FINRA Arbitration No. 20-03810 about Christopher McCoy. Supposedly, McCoy violated state securities laws, made unsuitable recommendations, breached his fiduciary duty, and was negligent. Because of this, the client allegedly sustained damages on over-the-counter equities and stocks. Therefore, on July 12, 2021, Calton Associates Inc. settled this matter by paying the client $54,000 in damages.
McCoy Disclosed Breach Of Fiduciary Duty Allegations By Calton Associates Inc. Client
Also, a client of Calton Associates Inc. contested Christopher McCoy’s sales practices, according to a complaint dated July 6, 2020. Allegedly, McCoy engaged in unauthorized discretionary trading, made unsuitable recommendations, and breached his fiduciary duty. It appears that McCoy allegedly caused the client to sustain damages on stocks and real estate securities. For this reason, the client sought damages from Calton Associates Inc. or McCoy in the amount of $313,604 in this matter. However, the securities firm denied this dispute.
Did You Sustain Losses Because Of Securities Broker Christopher Mccoy?
Did you suffer financially because of Christopher McCoy? If so, contact Soreide Law Group online or at (888) 760-6552 and speak to a securities lawyer about a potential recovery of your investment losses. Soreide Law Group helps investors throughout the country, works on a contingency fee basis, and advances all costs. McCoy and brokerage firms McCoy worked for deny accusations of sales practice violations.
