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Kevin McCoy Embroiled in Fifth Unsuitability Dispute

Kevin McCoy (CRD #:4557189), a broker registered with Cetera Investment Services, is involved in an unsuitability dispute, according to his BrokerCheck record, accessed on January 7, 2022. He is also a registered investment advisor with Cetera Investment Advisers. 

According to the allegations filed on October 29, 2021, Kevin McCoy recommended an unsuitable investment. The case is still pending. 

This is Kevin McCoy’s fifth investor dispute alleging unsuitability; between December 2019 to May 2020, Kevin McCoy was involved in a total of four unsuitability disputes, each alleging misrepresentation of a structured product. All four cases have since been denied. 

Unsuitability and Misrepresentation 

Two issues that investors should be aware of are unsuitability and misrepresentation.  

What is Unsuitability? 

“Unsuitability” is a term used to describe inappropriate recommendations and trades that are inconsistent with the customer’s goals and investment profile. 

Under FINRA Rule 2111, a customer’s investment profile includes the customer’s: 

  • Age 
  • Financial situation and needs 
  • Tax status 
  • Investment objectives 
  • Investment experience 
  • Risk tolerance. 

Brokers should take into account any risk tolerances or goals the person has expressed before making recommendations, and take note if those preferences change over time.  

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

What is Misrepresentation? 

Misrepresentation is a common problem in the securities industry. It usually occurs when an investment broker makes false or misleading statements about a financial product in an effort to persuade their customer to invest.  

Did you know that any of the following can be considered misrepresentation or omission? 

  • Inadequate due diligence concerning security offerings 
  • Failure to disclose all material risks 
  • Failure to disclose all transaction costs 
  • Unrealistic presumptions for investment projections 
  • Inaccurate investment performance calculation 

Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits. This unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Losses that can be attributed to a stockbroker’s material misrepresentations of facts may result in a viable securities arbitration claim for damages. 

Background Information 

Kevin McCoy has passed the following exams: 

  • Series 66 – Uniform Combined State Law Examination 
  • Series 63 – Uniform Securities Agent State Law Examination 
  • SIE – Securities Industry Essentials Examination 
  • Series 7 – General Securities Representative Examination 

Kevin McCoy is a registered broker in six states. He is also a registered investment advisor in Texas. 

Kevin McCoy has also worked with the following firms: 

  • LPL Financial (CRD#:6413) 
  • BBVA Securities (CRD#:27060) 
  • BBVA Wealth Solutions (CRD#:110476) 
  • St Johns Wealth Management (CRD#:105564) 
  • BBVA Compass Investment Solutions (CRD#:17086) 
  • Morgan Stanley Smith Barney (CRD#:149777) 
  • Citigroup Global Markets (CRD#:7059) 
  • Edward Jones (CRD#:250) 

Kurta Law Can Help 

If you have worked with Kevin McCoy and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or 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 and 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.