Thomas McDonald Allegedly Failed to Disclose Facts About Private Placements

Thomas McDonald (CRD #: 326904), a broker registered with McDonald Partners, allegedly failed to fully inform investors, according to his BrokerCheck record, accessed on March 27, 2023. Read on if you have questions about his alleged conduct as a broker.

Investor Disputes

On January 18, 2023, an investor alleged that Thomas McDonald failed to accurately disclose all the material facts in regard to investments in private securities offerings in 2014 and 2015. The client seeks $500,000 in damages in this pending dispute.

A similar dispute, filed on October 31, 2020, alleged that Thomas McDonald did not fully or accurately disclose all the material facts relating to a private placement and failed to provide updates and other documents following the client’s investment. This client sought $250,000 in damages and received a settlement of $175,000.

In a dispute filed on September 30, 2019, an investor alleged that Thomas McDonald failed to adequately inform them about the source of funds being raised for and used to close a contingency offering. He allegedly also failed to provide accurate information about the status of the underlying project. The client sought $250,000 and received a settlement of $82,500.

FINRA Rule 2020

FINRA Rule 2020 bans the use of deception, manipulation, and other fraudulent tactics to influence the purchase or sale of securities. The misrepresentation or omission of material facts violates this rule.

Settled Arbitration

On February 8, 2019, three investors filed a complaint alleging that Thomas McDonald violated the Ohio Securities Act and engaged in fraud, breach of contract, and negligence. You can read a copy of the arbitration agreement here.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

What is broker negligence?

Brokers may act in many negligent ways. Some typical examples include unsuitable investment recommendations, misrepresentations or omissions of fact, and failure to supervise other brokers.

Investors who feel their losses are the result of broker negligence may be able to recover their funds through FINRA arbitration.

Background Information

Thomas McDonald has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• Series 7TO – General Securities Representative Examination
• Series 99TO – Operations Professional Examination
• Series 79TO – Investment Banking Registered Representative Examination
• SIE – Securities Industry Essentials Examination
• Series 5 – Interest Rate Options Examination
• PC – AMEX Put and Call Exam
• Series 000 – General Securities Principal Examination
• Series 1 – Registered Representative Examination
• Series 24 – General Securities Principal Examination
• Series 4 – Registered Options Principal Examination
• Series 40 – Registered Principal Examination
• Series 12 – NYSE Branch Manager Examination

Thomas McDonald is a registered broker in nine states and a registered investment adviser in Ohio.

He has also worked for the following firms:

• Wayne Hummer Asset Management Company (CRD#:110757)     
• Wayne Hummer Investments (CRD#:875)
• Stifel, Nicolaus & Company (CRD#:793)
• McDonald Investments (CRD#:566)
• Kemper Securities Group (CRD#:19616)
• Prescott, Ball & Turben (CRD#:7656)
• Shearson Lehman Hutton (CRD#:7506)
• E. F. Hutton & Company (CRD#:235)     
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)     
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:572)

Kurta Law Can Help

If you worked with Thomas McDonald and you have concerns about your investments, contact a New York investment fraud lawyer today for a free case evaluation. Call (877) 600-0098 or email info@kurtalawfirm.com.

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.