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FINRA Investigates Philip Connors for Alleged Churning

Philip Connors (CRD #: 5274094), a broker formerly registered with Monmouth Capital Management, is the subject of a FINRA investigation, according to his BrokerCheck record, accessed on July 1, 2022. Read on if you have questions about Philip Connors’s conduct as a broker.

FINRA Investigation

On April 7, 2022, FINRA made a preliminary determination against Philip Connors recommending he face disciplinary action for allegedly engaging in excessive trading and recommending an unsuitable active trading strategy to clients, violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as FINRA Rules 2111, 2020, and 2010.

Section 10(b) of the Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 prohibits the use of manipulative and deceptive devices to influence the purchase and sale of securities.

Rule 10(b)-5 specifically bans the employment of fraudulent schemes and the misrepresentation or omission of material facts in relation to the purchase or sale of securities.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. These profiles include information about investors’ age, risk tolerance, and financial goals.

The requirement for suitability also applies to investment strategies and to trading activity. Trades must be quantitatively suitable, meaning the number of trades in total is not unsuitable for the investor’s goals, even if the individual trades are suitable.

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

FINRA Rules 2020 and 2010

FINRA Rule 2020, similar to Section 10(b) of the Securities Exchange Act, bans the use of deception, manipulation, and other fraudulent tactics to influence the purchase and sale of securities.

FINRA Rule 2010 requires brokers to uphold high standards of commercial honor and ethical conduct.

Background Information

Philip Connors has passed the following exams:

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

He has also worked for the following firms:

  • Monmouth Capital Management (CRD#:290248)
  • Worden Capital Management (CRD#:148366)
  • Laidlaw & Company (UK) (CRD#:119037)
  • Meyers Associates (CRD#:34171)
  • Buckman, Buckman & Reid (CRD#:23407)

Kurta Law Can Help

If you worked with Philip Connors 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.