Dale Earl Krueger, of Midland, Michigan, a stockbroker formerly registered with Moloney Securities, Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity by consenting to findings that he inappropriately utilized customers’ investment funds, and failed to cooperate with FINRA during an investigation into allegations of Krueger’s unauthorized transactions. Letter of Acceptance, Waiver and Consent, No. 2015048137601 (Sept. 22, 2017).
According to the AWC, Krueger facilitated collectible medals sales totaling $25,000.00 to customers RL and KL. Apparently, the company that Krueger operated was the recipient of the funds that customers invested; and funds were sent to Krueger’s company’s bank account. Evidently, Krueger agreed with customers for him to invest funds on behalf of the customers; however, he neglected to document their transactions in writing or segregate funds of customers from funds belonging to Krueger that were not related to the transaction. Further, Krueger loaned the customers’ funds to others despite those customers’ never having authorized the transactions. FINRA found that Krueger’s inappropriate handling of customer funds constituted violations of FINRA Rules 2010 and 2150(a).
Further, on August 14, 2017, Krueger was called upon by FINRA to hand over information and documentation regarding the allegations of his improper conduct. FINRA apparently imposed a deadline of August 28, 2017; however, on August 31, 2017, Krueger’s counsel stated to FINRA that Krueger would not be cooperating in their investigation. Consequently, FINRA found that Krueger’s failure to provide documents and information was conduct violative of FINRA Rules 2010 and 8210.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Krueger has been subject of eight customer initiated investment related disputes pertaining to allegations of his misconduct during the time he was associated with Moloney Securities CO., Inc., Sigma Financial Corporation, Broad Street Securities, and Merrill Lynch, Pierce, Fenner & Smith, Inc. Particularly, on February 13, 2004, a customer filed an investment related written complaint involving Krueger’s conduct, where the customer sought $30,000.00 in damages supported by allegations that Krueger made misrepresentations to the customer, and effected unsuitable purchases of limited partnership interest certificates.
Subsequently, a customer initiated investment related arbitration claim involving Krueger’s conduct was settled for $332,500.00 in damages supported by allegations of suitability and misrepresentation pertaining to real estate investment trusts and variable annuity investments effected in the customer’s account. Arbitration Case No. 04-00017 (July 19, 2005). Then, on July 27, 2007, a customer initiated investment related written complaint involving Krueger’s activities was resolved for $17,500.00 in damages supported by allegations of inappropriate margin interest charges relating to over-the-counter equities effected in the customer’s investment account.
Further, on January 17, 2014, a customer initiated investment related arbitration claim regarding Krueger’s activities was settled for $60,000.00 in damages supported by allegations that Krueger made misrepresentations to the customer and effected an unsuitable strategy involving investments in real estate securities, oil & gas, over-the-counter equities, and direct investment programs.
Krueger’s registration with Moloney Securities Co., Inc., was terminated on December 8, 2015. Since March 1, 1983, Krueger has been associated with seven different broker dealers, three of which have been expelled by securities regulators for violation of federal securities laws or are otherwise defunct.
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