James Gregory McKinney (also known as Greg McKinney) a stockbroker formerly employed by Cetera Advisors LLC has been charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that he failed to cooperate with a FINRA investigation into accusations of him engaging in trading or other activities in violation of FINRA rules. Department of Enforcement v. James G. McKinney Disciplinary Proceeding No. 2018057829001 (Nov. 5, 2019).
According to the Complaint, an investigation had been launched by FINRA in March of 2018 in regard to McKinney engaging in conduct violative of FINRA rules. The Complaint stated that two letters had been sent by FINRA to McKinney in March and April of 2019 wherein McKinney was instructed to furnish documents and information to the regulator as part of the investigation. McKinney allegedly responded to FINRA’s requests; however, he failed to fully address the regulator’s concerns.
The Complaint stated that McKinney was provided with another letter from FIRNA on July 12, 2019 which called upon him to supplement the documents and information he previously provided to the regulator, but nothing was provided by McKinney in response. The Complaint indicated that additional attempts had been made by FINRA to secure McKinney’s documentation and information but to no avail. When these requests were made, McKinney was allegedly warned that his failure to comply with FINRA’s requests made under Rule 8210 could result in sanctions up to and including a bar from the securities industry. FINRA indicated that it has not received any documentation or information from McKinney since his initial response to the March and April 2019 requests.
The Complaint also alleged that McKinney disregarded FINRA’s requests for his testimony. McKinney was allegedly contacted by FINRA on July 26, 2019 and instructed under Rule 8210 to make an appearance and provide recorded testimony. The Complaint stated that McKinney failed to fulfill FINRA’s request because he neglected to show up on August 29, 2019. Allegedly, FINRA sent McKinney another request to testify and expected him on September 18, 2019. McKinney was a no show again, according to the Complaint. FINRA Department of Enforcement alleged that McKinney’s conduct was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that McKinney is referenced in three customer initiated investment related disputes that concern allegations of his violative conduct during the period in which he was employed by Securian Financial Services Inc. and Cetera Advisors. Specifically, a customer filed an investment related complaint concerning McKinney’s activities where the customer sought $292,000.00 in damages supported by accusations that when McKinney was associated with Securian Financial Services Inc., the customer was inappropriately advised to liquidate stocks from the customer’s investment account; and the customer had been sold fixed and variable annuity products that were in no way suitable.
Another customer filed an investment related complaint in regard to McKinney’s conduct in which the customer requested damages estimated to exceed $5,000.00 founded on allegations that while McKinney was associated with Cetera Advisors, insurance and annuity contracts had been modified or terminated without the customer’s knowledge or consent. Also, McKinney is referenced in a customer initiated investment related complaint on May 9, 2016 where the customer sought $56,370.00 in damages based upon accusations that during the period in which he was employed by Cetera Advisors, the customer’s retirement account was improperly liquidated with the proceeds being used to purchase inappropriate direct investments.
McKinney’s employment with Cetera Advisors has been terminated as of August 1, 2019.
