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Patrick Gillooly Allegedly Misrepresented UITs

Patrick Gillooly (CRD #: 1175343), a broker formerly registered with LPL Financial, allegedly misrepresented unit investment trusts, according to his BrokerCheck record, accessed on July 8, 2022. Keep reading if you have questions about Patrick Gillooly’s conduct as a broker.

Investor Disputes

A dispute filed on March 28, 2022, alleges that Patrick Gillooly misrepresented unsuitable unit investment trusts (UIT) investments purchased by investors on December 1, 2020, and January 28, 2021, respectively. Both of these disputes were denied by the firm.

However, investors should be aware that firms can deny disputes without a third-party review, and investors can still recover their funds by seeking out FINRA arbitration after a denial.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that suit an investor’s profile. The investor profile includes information about the investor’s risk tolerance, tax status, and financial goals.

Investors who  believe their losses were caused by unsuitable investment recommendations may be able to recoup their losses through FINRA arbitration.

FINRA Rule 2020

Misrepresentation of investments violates FINRA Rule 2020, which prohibits the use of manipulative and deceptive devices to influence the purchase and sale of securities.

What is a unit investment trust?

A unit investment trust (UIT) consists of a fixed portfolio of stocks and bonds, similar to a mutual fund. The lack of liquidity and high fees associated with cashing out early make UITs unsuitable for many investors. Many UITs take years to mature. 

Background Information

Patrick Gillooly 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
  • Series 10 – General Securities Sales Supervisor – General Module Examination
  • Series 9 – General Securities Sales Supervisor – Options Module Examination

He previously worked with the following firms:

  • LPL Financial (CRD#:6413)
  • Invest Financial Corporation (CRD#:12984)
  • UVEST Financial Services Group (CRD#:13787)
  • HSBC Securities (USA) (CRD#:19585)
  • IFMG Securities (CRD#:14416)
  • Thomson McKinnon Securities (CRD#:829)

Kurta Law Can Help

If you worked with Patrick Gillooly 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.