Phil Donahue (also known as Joseph Philip Donahue) of Panama City Beach, Florida, a stockbroker currently registered with PFS Investments Inc., has been fined $2,500.00 and suspended for thirty days from associating with any FINRA member in any capacity based upon allegations that Donahue made unsuitable recommendations. Letter of Acceptance Waiver and Consent No. 2020068544901 (Aug. 10, 2022).
According to the AWC, in October 2010, Donahue became the broker of a retired couple at PFS Investments Inc. Initially, the customers had an investment objective of moderate growth. They later changed that objective to conservative growth, which according to PFS Investments guidelines meant that the customers should not invest more than 13 percent of their portfolio in a sector fund.
In 2016, as a result of Donahue’s recommendation, the couple put 90 percent of their investments at PFS into a non-diversified, single mutual fund. This recommendation was not consistent with the customers’ investment objectives and resulted in the customers being exposed to a substantial risk of loss. In fact, by 2020, the mutual fund had lost 50 percent of its value. The customers realized a significant loss. Therefore, Donahue violated FINRA Rules 2010 and 2011.
Public Disclosure shows that on March 5, 2021, a customer initiated investment related FINRA securities arbitration claim involving Donahue’s activities was settled for $25,000.00 in damages based upon allegations that Donahue breached a fiduciary duty, acted negligently, and engaged in other sales practice violations with regard to the recommendation and sale of mutual fund shares when Donahue was associated with PFS Investments Inc. FINRA Arbitration No. 20-03669.
Since 2016, Donahue has been associated with Primerica Advisors as an investment adviser representative. Since 1983, he has been associated with PFS Investments Inc. as a stockbroker.
