New Jersey Securities Bureau Bars John Cahill As Securities Broker, Financial Advisor Representative
Soreide Law Group is looking into potential claims to bring on behalf of investors against securities broker John Joseph Cahill (CRD#: 1240551, Upper Salle River, New Jersey). Supposedly, the New Jersey Bureau of Securities revoked Cahill’s securities broker and financial advisor representative registrations. Financial Industry Regulatory Authority (FINRA) barred him as a securities broker too. Moreover, two clients disputed John Cahill’s sales practices, and two of his employers disaffiliated with him amid misconduct allegations. For more on these disclosures, read below.
New Jersey Bureau Of Securities Revokes John Cahill’s Securities Broker Registration
It appears that in March 2021, the New Jersey Bureau of Securities revoked John Cahill’s securities broker registration (agent registration) and his financial advisor registration (investment adviser representative registration).
As the regulator notes, Janney Montgomery Scott terminated John Cahill in March 2019. This happened when the firm found out Cahill allegedly failed to identify his fiduciary relationship with an elderly widow. Supposedly, from 2012 to 2019, Cahill used the client’s bank account to make $693,990 in payments to himself. The New Jersey Bureau of Securities indicated that by the time the client died, more than $1,000,000 had been depleted from the client’s account by Cahill.
The NJ regulator indicates that John Cahill violated Janney Montgomery Scott’s policies by not disclosing his fiduciary relationship. Namely, Cahill did not get approval to be a power of attorney for the client. It also appears that Cahill was supposed to disclose in an annual employee certification review whether he was a fiduciary or engaged in certain outside business activities. Cahill did not disclose the POA or get authorization to serve as an agent for the client.
Securities Bureau Notes FINRA’s Bar Of Cahill As Securities Broker
Also, New Jersey Securities Bureau noted that FINRA barred John Cahill as a securities broker in January 2020. It appears that FINRA asked Cahill to testify and provide supporting documents relating to allegations of his fiduciary role for an elderly person who was a client of his at Morgan Stanley – his prior employer. The regulator also sought to ascertain whether Cahill commingled or converted the elderly client’s money. FINRA barred Cahill for failing to comply with this investigation.
Because of these incidents, the New Jersey Bureau of Securities found that John Cahill engaged in dishonest practices in the securities business.
John Cahill’s Morgan Stanley Smith Barney Client Alleges Breach Of Fiduciary Duty
Cahill worked for Morgan Stanley before joining Janney Montgomery Scott. Notably, the estate for a client of Morgan Stanley Smith Barney (MSSB) came forward with a dispute about Cahill. First, the estate argues that Cahill breached a fiduciary duty to the client. Secondly, Cahill is accused of converting the client’s funds. Conversion basically means misuse of an investor’s assets. For this reason, Morgan Stanley Smith Barney agreed to pay $695,000 to the client to resolve this matter in September 2021.
Cahill Allegedly Makes Unsuitable Stock Transaction
It appears that a second dispute on John Cahill’s record concerns suitability. Namely, the executor of a client’s estate alleged unsuitable stock investments by Cahill. Evidently, Morgan Stanley Smith Barney paid $42,100 to the client to resolve this matter.
Losses By Investing Through John Cahill?
Apparently, John Cahill denies all allegations of sales practice violations. Have you experienced investment losses because of him? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered compensation for many US clients who have experienced losses from their securities brokers and financial advisors.