Losses from Rick Konecny?

The Financial Industry Regulatory Authority (“FINRA”) reports troubling disclosures from securities broker Rick Konecny (CRD#: 1727785, Chicago, Illinois). Evidently, the securities broker, who recently worked for J.P. Morgan Securities LLC (July 2013 to April 2016), discloses three regulatory sanctions, including a permanent bar from the securities industry by FINRA, along with 11 client disputes and an employment termination from J.P. Morgan for violating rules on both trading and client issue handling. Those client disputes, summarized below, suggest Konecny made unauthorized trades and misrepresented investments. Here’s more on the allegations against Rick Konecny:

J.P. Morgan Client Files Arbitration Suggesting Rick Konecny Made Bad Investments

 

The most recent disclosure comes from a J.P. Morgan client who filed FINRA Arbitration #: 18-01205 dated April 2, 2018. Significantly, Rick Konecny is alleged to have invested the client’s assets in unsuitable investments. The client indicated that Konecny put too much of the client’s money in stocks, over-concentrating the investment account. For this reason, the client demanded $1,210,380 in damages in this pending matter.

UBS Financial Services Client Files Dispute Indicating Konecny Misrepresented Investments

 

On January 11, 2018, A UBS Financial Services Inc. client filed FINRA Arbitration #: 18-00101. The client alleged that Rick Konecny misrepresented information to her about certain equities that Konecny sold. Not only that, but Konecny allegedly sold investments which were not suitable for her. Supposedly, the client experienced higher risks due to Konecny overconcentrating her account in those equities. All things considered, on November 14, 2018, UBS Financial Services settled this matter by compensating the client for losses.

FINRA Arbitration Filed By J.P. Morgan Client Suggests Rick Konecny Used Margin Without Authorization

 

FINRA BrokerCheck shows that a J.P. Morgan client contested Rick Konecny’s sales practices by filing FINRA Arbitration #: 17-02305. Seemingly, the Statement of Claim alleges unsuitable investments, over-concentration, and unapproved margin use. According to the client, Konecny used margin in connection with the client’s stock investments. However, Konecny did not possess any written authorization. It appears that J.P. Morgan paid the client $750,000 to resolve this issue June 6, 2019.

J.P. Morgan Disaffiliates With Konecny Before FINRA Bar

 

Clients aren’t the only ones who took issue with Rick Konecny’s sales practices. In fact, J.P. Morgan disaffiliated with Konecny for not disclosing potential client disputes and for making discretionary trades. Supposedly, clients and the brokerage firm did not provide written authorization for Konecny’s trades.

Later, Rick Konecny failed to respond to FINRA’s Request for Information. Because of this, FINRA suspended him September 11, 2017. Konecny remained unresponsive to FINRA after the suspension, making matters worse. That is to say, FINRA automatically barred Konecny November 11, 2017. In addition, FINRA issued sanctions to Konecny for failing to comply with the resolution of client disputes.

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Did you suffer losses by investing with J.P. Morgan Securities broker Rick Konecny? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about 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 millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.