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Patrick Cody Allegedly Mismanaged Client’s Account

Patrick Cody (CRD #: 5902144), a broker registered with Merrill Lynch, Pierce, Fenner & Smith, is involved in an active investor dispute., according to his BrokerCheck record, accessed on July 13, 2022. Keep reading to learn more about Patrick Cody’s conduct as a broker.

Investor Dispute

On May 5, 2022, an investor alleged that Patrick Cody engaged in fraud and mismanagement, charged excessive fees, and recommended unsuitable investments. This dispute remains pending.

FINRA Rule 2111 – The Suitability Rule 

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must take into account an investor’s tax status, age, risk tolerance, and other information described in their profile.

Some common violations of this rule include:

  • Recommendations of high-risk or illiquid investments. These investments may lead to losses or high fees for the investor.
  • Excessive trading, which incurs too many fees for the investor to be able to generate a profit. 
  • 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.

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

Background Information

Patrick Cody has passed the following exams:

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

Patrick Cody is a registered broker in 30 states, the District of Columbia, and the Virgin Islands. He is also a registered investment adviser in California and Texas.

Kurta Law Can Help

If you worked with Patrick Cody 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.