John Chaney Allegedly Recommended Unsuitable Investments

John Chaney (CRD #: 44529), a previously registered broker with Moloney Securities Co, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on January 25, 2024. Keep reading if you have more questions regarding his conduct. 

On October 23, 2023, an investor alleged that John Chaney recommended unsuitable investments and had engaged in negligence. The investor is seeking half a million dollars. 

There are similar allegations from May 30, 2023. An investor alleged that John Chaney recommended unsuitable investments and had engaged in negligence. The investor is seeking $50,000. 

Unsuitable Investments 

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals.

Some common violations of this rule include:

• Excessive trading, which violates the need for quantitative suitability. This means that the number of trades must suit an investor’s goals. Excessive trading is also known as “churning.” 
• Recommendations of unsuitable investment strategies. For instance, overconcentration of securities in a certain stock or sector is typically unsuitable due to the degree of risk.
• Recommendations of high-risk or illiquid investments. These investments may lead to high fees for the investor.

Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

Negligence

Many types of broker misconduct may qualify as negligence. Typical examples include unsuitable investment recommendations, misrepresentations or omissions of material fact, and failure to follow instructions.

Background Information 

John Chaney has passed the following exams: 

• Series 63 Uniform Securities Agent State Law Examination 
• Series 7TO General Securities Representative Examination 
• SIE – Securities Industry Essentials Examination 
• Series 1 Registered Representative Examination 

John Chaney has registered with the following firms since 2008: 

• Moloney Securities Co. (CRD #: 38535) 
• Arque Capital (CRD #: 121192) 
• Fox & Company Investments (CRD #: 18517) 

Kurta Law Can Help 

If you have worked with John Chaney and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.