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Investor Alleges Matthew Franchina Acted Negligently

Nov 22, 2022 Unsuitable Investments

Matthew Franchina (CRD #: 5987117), a broker registered with Moloney Securities Company, is involved in a pending investor dispute, according to his BrokerCheck record, accessed on November 7, 2022. Read on if you have questions about his conduct as a broker.

Investor Dispute

A pending dispute filed on September 2, 2022, named Matthew Franchina in allegations involving negligence and unsuitability. The investor seeks $100,000 in damages.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must consult an investor’s profile, which describes their tax status, risk tolerance, and other characteristics.

  • High-risk and illiquid investments may be unsuitable due to the likelihood of losses and their difficulty to sell in the near future, respectively.
  • Trading activity may be quantitatively unsuitable, meaning that the broker executed an excessive number of trades, cutting into investors’ returns with commissions and trading fees.
  • Suitability also applies to investment strategies. For example, overconcentration in a particular sector or stock is often an unsuitable investment strategy due to the level of risk involved.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds through FINRA arbitration.

What is broker negligence?

Broker negligence can take many forms. Frequent examples of negligence include material misrepresentations and omissions, unsuitable investment recommendations, and unauthorized trading. Investors who have lost money through broker negligence may be able to recover their funds throughFINRA arbitration.

Background Information

Matthew Franchina has passed the following exams:

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

Matthew Franchina is a registered broker in 8 states and a registered investment adviser in California and Texas.

He has also worked for the following firms:

  • Moloney Investment Advisory (CRD#:282140)
  • Investment Advisors (CRD#:15708)
  • Bankers Life Securities (CRD#:173962)
  • ProEquities (CRD#:15708)

Kurta Law Can Help

If you worked with Matthew Franchina and you have concerns about your investments, please contact us today at 877-600-0098 or 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.