Breach Of Fiduciary Duty Alleged By Clients Of Barred Broker Greg McKinney

Two more investor disputes have surfaced on the FINRA BrokerCheck Report for James Gregory McKinney (CRD#: 2100850, Tulsa, Oklahoma). Notably, FINRA barred McKinney as a stockbroker for failing to testify regarding his alleged sales practice violations. Not only that, but clients have filed disputes about his sales of alternative investments. Overall, these disclosures suggest that McKinney breached a fiduciary duty and sold mispresented investments. Here’s a summary of the issues surrounding Greg McKinney:

Greg McKinney Misrepresents REIT Investments To Cetera Advisors Client

According to Cetera Advisors, a client filed a dispute on March 18, 2020 about Greg McKinney’s sales practices from 2013 to 2019. It seems that McKinney misrepresented REITs to this client. Not only that, but McKinney supposedly recommended securities including OTC equities and REITS mainly to generate commissions from the client. Because of this, on June 19, 2020, Cetera Advisors settled the client’s dispute through paying $29,593 to the customer.

Cetera Client Indicates McKinney Breached Fiduciary Duty Regarding Alternative Investments

A client of Cetera Advisors made a complaint about Greg McKinney on March 17, 2020. Significantly, the client suggested that McKinney breached a fiduciary duty in connection with the sale of DPP and LP interests. It seems that McKinney failed to put the client’s interests first with respect to these transactions. Not only that, but the client was apparently deceived as a result of McKinney’s actions. Further, McKinney and Cetera Advisors were supposedly negligent in recommending or selling these investments. Therefore, the customer asked for $500,000 to $1,000,000 in compensation. This matter is awaiting a resolution.

FINRA Expels Greg McKinney For Lack Of Compliance In Investigation

Notably, FINRA barred Greg McKinney from acting as a broker or otherwise associating with a broker-dealer firm effective March 26, 2020. Apparently, FINRA’s sanction relates to McKinney’s violation of Rules 8210 and 2010. Apparently, FINRA’s investigation concerned allegations of McKinney’s undisclosed private securities transactions and his failure to disclose tax liens. After failing to respond to a FINRA Department of Enforcement Complaint, a FINRA Hearing Officer issued a Default Decision. Notably, the Decision finds that in 2019, McKinney failed to produce information and documents and that he failed to provide testimony.

Prior Client Disputes Allege McKinney Made Unsuitable Recommendations

FINRA BrokerCheck shows that some of Greg McKinney’s previous clients brought disputes about him regarding his recommendations of annuities and DPPs or LPs. In a 2016 complaint, a Cetera Advisors client contended that it was not in his best interest to liquidate and reinvest a 457 plan. In a 2005 matter, a Securian Financial Services client indicated that McKinney made bad annuities recommendations. It seems that McKinney failed to consider the client’s tax obligations when advising the liquidation of stocks for purchases of annuities. However, Cetera and Securian denied those clients’ disputes.

Did Greg McKinney Sell You Bad Investments?

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