John Rothrock McKinstry Jr. of St. Louis Missouri a stockbroker formerly registered with Moloney Securities Co. Inc. is the subject of a customer initiated investment related arbitration claim where the customer sought $300,000.00 in damages supported by allegations that (1) fiduciary obligations to the customer were violated (2) false or misleading statements had been made to the customer (3) transactions effected in the customer’s account failed to be suitable for the customer and (4) the customer was defrauded in regard to the oil and gas master limited partnership investments selected for the customer while McKinstry was associated with Moloney Securities Co. Inc. FINRA Arbitration No. 18-03438 (Oct. 15, 2018).
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that McKinstry has been identified in twelve more customer initiated investment related disputes pertaining to accusations of his misconduct during the time that he was associated with securities broker dealers including Moloney Securities Co. Inc., Smith Moore Co. and A.G. Edwards Sons Co. Inc. Particularly, a customer initiated investment related arbitration claim concerning McKinstry’s activities was resolved for $72,000.00 in damages founded on allegations that while McKinstry was employed by Moloney Securities: misrepresentations had been made concerning investments; transactions executed in the customer’s account were unsuitable for the customer; Moloney Securities Co. failed to supervise McKinstry’s private investments including master limited partnership investments; and the customer was defrauded. FINRA Arbitration No. 16-00321 (Jan. 4, 2017).
Thereafter, a customer initiated investment related arbitration claim regarding McKinstry’s conduct was settled for $110,000.00 in damages based upon accusations including suitability, misrepresentation, breach of fiduciary duty, and negligence relating to oil and gas investments sold to the customer which underperformed. FINRA Arbitration No. 16-00921 (Feb. 1, 2017).
Moreover, a customer initiated investment related arbitration claim involving McKinstry’s activities was resolved for $19,000.00 in damages supported by allegations of the customer’s account having been negligently supervised; violations of fiduciary obligations which were owed to the customer; fraudulent oil and gas investment transactions placed in the customer’s account; and the sale of direct investments which were in no way appropriate given the customer’s financial profile or goals for investing. FINRA Arbitration No. 16-01251 (Feb. 10, 2017).
Also, McKinstry is referenced in a customer initiated investment related arbitration claim in which the customer requested $400,000.00 in damages founded on accusations that while McKinstry was associated with Moloney Securities Inc., contractual obligations to the customer had been breached; the customer’s account was handled in a negligent manner; fiduciary duties owed to the customer had been violated; and the customer was defrauded by investing in alternative investments. FINRA Arbitration No. 17-02958 (Nov. 6, 2017).
FINRA Public Disclosure additionally reveals that McKinstry has been barred from associating with any FINRA member in any capacity founded on findings that McKinstry obstructed a FINRA investigation into allegations of him making bad investment recommendations to at least four customers of Moloney Securities; and potentially executed unapproved customer loans. Letter of Acceptance Waiver and Consent No. 2015046315101 (Apr. 26, 2016).
According to the AWC, McKinstry was instructed by FINRA to provide recorded testimony for the regulator under Rule 8210. Evidently, the focus of the investigation concerned possible omissions and false or misleading statements being made to the customers by McKinstry concerning loan arrangements. Allegedly, a charitable association who listed McKinstry as a director was a party to a customer loan. The regulator also sought information that concerned the suitability of recommendations made by McKinstry to customers of the firm. In addition to FINRA requesting McKinstry’s recorded testimony, the regulator also instructed McKinstry to produce information and documentation. Evidently, McKinstry was warned at this time that his failure to cooperate could result in him being barred by FINRA. Still, McKinstry neglected to provide recorded testimony or hand over any information and documentation to the regulator. Consequently, FINRA found McKinstry’s conduct violative of FINRA Rules 2010 and 8210.
McKinstry was discharged by Moloney Securities Co. based upon the firm having received two complaints from customers alleging they had been provided bad investment recommendations with respect to the oil and gas direct participation program or limited partnership interests sold to them while McKinstry was associated with the firm.
