Mel Coffey Facing FINRA Investigation Over Trading

FINRA Investigates Securities Broker Mel Coffey's Trading For Suitability

The Soreide Law Group has important information to share with you in regard to securities broker Arthur Mel Coffey (“Mel Coffey”) (CRD#: 2553466, Miller Place, New York). Specifically, Coffey, who worked for securities firms Legend Securities, First Standard Financial Company, and SW Financial, is under investigation by FINRA, who oversees most securities brokers in the country. Moreover, 14 investor disputes are reported on BrokerCheck, where investors allege sales practice violations by Coffey. Let’s take a look at these disclosures, including how you might be able to recover your investment losses.

FINRA Investigates Mel Coffey For Possible Unsuitable Trading

Evidently, FINRA opened a case on Mel Coffey in August 2021. The regulator, who has the power to discipline securities brokers for misconduct, made a preliminary assessment on Coffey and believes that enforcement action is warranted. Supposedly, Coffey could have violated FINRA rules on excessive and unsuitable trading. It is unclear at this time what firm(s) Coffey worked for or whether FINRA will actually bring disciplinary action against him.

Client Of John Thomas Financial Alleges Unsuitable Private Placements

Also, a client of John Thomas Financial brought a dispute about Mel Coffey alleging unsuitable private placements. Suitability generally concerns a client’s investment objectives, risk tolerance, and financial needs. Evidently, the securities firm opted to settle this matter by making a $5,000 payment to the client.

Client Of John Thomas Financial Wins Arbitration Claim

Moreover, Mel Coffey and John Thomas Financial are named in a FINRA Arbitration Claim which alleges unsuitability, breach of contract, churning, and failure to supervise. The arbitrator determined that some respondents were liable and required them to pay $16,000. The FINRA Award states that the client settled claims against Coffey.

Excessive Trading Alleged In Dispute About Mel Coffey

Notably, a client of John Thomas Financial disputed Mel Coffey’s stock trading. Namely, the client contends that Coffey was excessively trading in the client’s account. Supposedly, the client sustained damages on unsuitable equity transactions. For this reason, John Thomas Financial opted to settle with the client by making a $14,500 payment to the client.
Other investor disputes allege one or more of the following: unauthorized trading, poor performance, churning, misrepresentation, negligence, and breach of fiduciary duty. FINRA BrokerCheck shows that the majority of the investor disputes have settled or resulted in an Award. Some of those disputes concern Coffey’s activities at Gaines Berland Inc., Ladenburg Capital Management, and John Thomas Financial.

Did You Sustain Damages By Investing Through Coffey?

Did securities broker Mel Coffey cause you to experience losses? If so, call Soreide Law Group at (888) 760-6552 and speak with a skilled securities lawyer about a potential recovery of your losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered meaningful compensation for United States investors who incurred losses from their financial advisors and securities brokers. Please note that Coffey denies all allegations of his sales practice violations.