Malik Mallory Allegedly Failed to Act in Clients’ Best Interest

Malik Mallory (CRD #: 6738444), a broker registered with Edward Jones, was the subject of a recent dispute, according to his BrokerCheck record, accessed on July 16, 2022. If you want to know more about Malik Mallory’s conduct as a broker, keep reading.

Investor Dispute

On April 27, 2022, a guardian alleged that Malik Mallory purchased and held investments in their account which were not in the ward’s best interest. This dispute was denied by the firm.

However, investors should be aware that firms can deny disputes without permitting an outside review. Investors may be able to recoup their losses after a denial by seeking out FINRA arbitration.

FINRA Rule 2010 requires that brokers uphold high standards of professional honor and just and equitable principles of trade. Many forms of misconduct violate this rule.

Unsuitable Investment Recommendations Violate FINRA Rule 2111

Investments that are in a client’s best interest are also suitable. FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their risk tolerance, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

• Investments can be unsuitable because they are high risk and likely to lose money.
• Securities may also be unsuitable because they are illiquid, meaning that they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
• Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.
• These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.

Background Information

Malik Mallory has passed the following exams:

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

Malik Mallory is a registered broker in 17 states and a registered investment adviser in California and Texas.

He previously worked for LPL Financial (CRD#:6413).

Kurta Law Can Help

If you worked with Malik Mallory and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want 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.