Dennis James Murphy of Red Bank New Jersey a stockbroker formerly employed by Monmouth Capital Management LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that he failed to cooperate with FINRA’s investigation into allegations of unsuitable trades being executed in customer accounts. Letter of Acceptance Waiver and Consent No. 2019062980701 (May 18, 2020).
According to the AWC, on April 3, 2020, as part of a FINRA investigation, the regulator called upon Murphy to testify about his knowledge of Monmouth Capital Management’s supervision of possibly inappropriate transactions. FINRA indicated that on April 29, 2020 and May 12, 2020, Murphy indicated that he received FINRA’s request but that he would not comply with it. Murphy failed to make an appearance and provide testimony at any point in FINRA’s investigation. FINRA determined that Murphy’s conduct was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure reveals that Murphy has been identified in three customer initiated investment related disputes concerning accusations of his misconduct when he was employed by Chelsea Financial Services and Woodstock Financial Services. Murphy is the subject of a customer initiated investment related written complaint on August 14, 2020 where the customer sought $7,500.00 in damages based upon accusations that the customer’s investment instructions were disregarded by Murphy as it concerned over-the-counter equities. The complaint also alleges that the customer’s account poorly performed because of Murphy’s actions.
On January 13, 2016, another customer filed an investment related complaint involving Murphy’s conduct in which the customer requested $100,000.00 in damages based upon allegations that unauthorized over-the-counter equities transactions were effected in the Woodstock Financial Group customer’s account by Murphy. According to the claim, the customer’s account had been excessively traded and churned by the stockbroker.
Murphy has been identified in a customer initiated investment related arbitration claim where the customer sought $21,982.00 in damages founded on accusations that the Woodstock Financial Group customer was defrauded. FINRA Arbitration No. 19-07234 (Sept. 20, 2019). According to the claim, the customer was placed into unsuitable investments. A fiduciary duty had allegedly been breached by Murphy. The claim also alleges that misleading and false statements were made to the customer and that Murphy’s negligence resulted in the customer’s over-the-counter equities losses.
Murphy’s registration with Monmouth Capital Management has been terminated as of May 16, 2019.
