Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Christopher Joseph McCoy (CRD # 4113108) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into unauthorized discretion.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. McCoy.
Registration Background for Christopher McCoy
Mr. McCoy first became registered in the securities industry in 2000. He was most recently registered with Montclair, NJ based Calton & Associates, Inc. (CRD # 20999) from August 2012 to December 2022. His prior registrations include Financial Network Investments Corporation (CRD # 13572) from April 2007 to September 2012, and First Republic Group, LLC (CRD # 39781) from January 2000 to May 2007.
FINRA’s Allegations Against Christopher McCoy
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated April 16, 2024 (No. 2020067072101), Mr. McCoy consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “At various points in time from May 2015 through June 2019, [Mr.] McCoy exercised discretion in eight brokerage accounts of a total of six firm customers, three of whom were seniors”;
- “Although [Mr.] McCoy discussed investment strategy with the customers, he did not speak with the customers on the days of the trades for approximately 200 transactions”;
- “Calton’s procedures prohibited discretionary transactions in customer accounts without written authority from the customer and prior approval from the firm”;
- “[Mr.] McCoy did not have written authorization from the customers, or permission from Calton, to exercise discretion in the accounts”;
- “[Mr.] McCoy also falsely attested in five compliance questionnaires that he had not exercised discretionary trading authority over his customer’s accounts”; and
- By virtue of his actions, Mr. McCoy violated NASD Rule 2510(b) and FINRA Rule 3260(b) regarding discretionary accounts, and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Christopher McCoy from Securities Industry
As a result of such violations, and in addition to the above-described findings and conclusions, FINRA’s April 16, 2024 AWC also indicates that Mr. McCoy consented to the following sanction(s):
- a one-month suspension from association with any FINRA member in all capacities; and
- a fine in the amount of $5,000.00.
Christopher McCoy Has A Prior History of Securities Industry Customer Complaints
In addition to Mr. McCoy being suspended by FINRA from the securities industry regarding various sales practice violations, FINRA BrokerCheck for Mr. McCoy reveals that he has a prior history of customer complaints and/or customer-initiated arbitrations, including but not necessarily limited to the following:
- On November 13, 2020, a customer-initiated arbitration was commenced against Mr. McCoy regarding alleged actions that occurred while he was associated with Calton & Associates, Inc. The customer allegations included unsuitability, negligence, breach of fiduciary duty and violation of state securities laws. The customer further alleged damages in the amount of $350,000.00. On July 12, 2021, the arbitration was settled in the amount of $54,000.00.
- On June 25, 2020, a customer-initiated arbitration was commenced against Mr. McCoy regarding alleged actions that occurred while he was associated with Calton & Associates, Inc. The customers’ allegations included, unsuitability, breach of fiduciary duty and unauthorized discretion. The customer further alleged damages in the amount of $313,604.00. On August 24, 2021, the arbitration was denied.
Have You Lost Money with Christopher McCoy?
If you or someone you know has or had a brokerage account with Mr. Christopher Joseph McCoy and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
