Christopher Joseph McCoy of Tampa, Florida, a stockbroker registered with Calton Associates Inc., has been fined $5,000.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because McCoy engaged in unauthorized discretionary trading. Letter of Acceptance, Waiver, and Consent No. 2020067072101 (April 16, 2024).
The regulatory action originated from a customer dispute filed with FINRA about McCoy. According to the AWC, from May 2015 through June 2019, McCoy exercised discretionary power in eight brokerage accounts belonging to six customers, including three seniors. This occurred despite Calton Associates’ prohibition against discretionary trading without prior written customer authority and firm approval.
FINRA indicated that McCoy conducted approximately 200 transactions without speaking to the customers on the trade days. Additionally, he falsely attested on five compliance questionnaires that he had not exercised discretionary trading in his customer’s accounts. Therefore, McCoy violated NASD Rule 2510(b) and FINRA Rules 3260(b) and 2010.
FINRA Public Disclosure shows that McCoy is referenced in two customer initiated investment related disputes concerning McCoy’s conduct while associated with securities broker dealers. On July 6, 2020, a customer filed an investment related complaint involving McCoy’s conduct in which the customer requested $313,604.00 in damages based upon allegations that McCoy engaged in unauthorized and unsuitable trading and breached his fiduciary duties in connection with the sale of real estate securities and stocks during the time that McCoy was associated with Calton Associates Inc. This complaint was denied by the securities broker dealer.
On August 24, 2021, a customer initiated investment related FINRA securities arbitration claim involving McCoy’s conduct was settled for $54,000.00 in damages based upon allegations that McCoy violated state and federal securities laws, was negligent, made unsuitable recommendations, and breached his fiduciary duties in connection with the sale of over-the-counter equities and stocks when McCoy was associated with Calton Associates Inc. FINRA Arbitration No. 20-03810.
McCoy was associated with Calton Associates Inc. in Montclair, New Jersey from August 31, 2012, to December 20, 2022.
