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Did Sandra McKoy Recommend an Unsuitable Investment?

Mar 25, 2022 Unsuitable Investments

Sandra McKoy (CRD #: 2954755), a broker registered with Kovack Securities, is involved in an investor dispute, according to her BrokerCheck record, accessed on March 19, 2022. She is an investment advisor registered with Kovack Advisors.

According to the allegations filed on January 11, 2022, Sandra McKoy recommended an unsuitable investment. This is not the first dispute on her record to allege unsuitable investment recommendations. 

Settled Disputes

On April 4, 2016, Sandra McKoy was named in an investor dispute alleging she made unsuitable investment recommendations, resulting in unnecessary and unsuitable transactions. The case was settled for $50,000.

On June 9, 2015, Sandra McKoy was involved in an investor dispute. The investor claimed she was unhappy with her overall account performance and fees. The case settled for $60,000.

What is a Suitable Investment?

FINRA 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. 

FINRA Rule 2111 identifies three elements of a suitability determination: 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.

  1. Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards.
  2. Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client's personal profile. The profile includes information on the investor's financial goals, investing experience, and risk tolerance. 
  3. Quantitative Suitability: Brokers with control over a customer's account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns. 

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

Background Information

Sandra McKoy 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 26 - Investment Company Products/Variable Contracts Principal Examination

She is a registered broker in seven states and a registered investment advisor in Florida. 

Sandra McKoy has also worked with the following firms:

  • Citigroup Global Markets (CRD#:7059)
  • Suntrust Advisory Services (CRD#:283390)
  • Suntrust Investment Services (CRD#:17499)

Kurta Law Can Help

If you have worked with Sandra McKoy and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors 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.