The law firm of Haselkorn & Thibaut, P.A., a national investment fraud law firm, has initiated an investigation into Gerald T. (“JT”) Coyne and Cuso Financial Services, L.P. This San Diego, CA-based firm is currently under scrutiny due to three disclosures related to regulatory events, as documented on the Financial Industry Regulatory Authority’s (FINRA) Brokercheck.
Gerald T. (“JT”) Coyne, a former broker with Cuso Financial Services, L.P., has been the subject of numerous customer complaints and legal actions in recent years. This blog post will delve into the details of these allegations and the subsequent investigations.
Gerald Coyne’s Customer Complaints
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Coyne has been the subject of several customer complaints, most notably in February 2019. Four clients alleged that Coyne misrepresented material features and the return potential of variable annuities purchased between 2013 and 2017. The dispute was settled for $164,000, which included damages for surrender costs and market losses resulting from the premature surrender of the variable annuities.
Termination and FINRA Investigation
Coyne was terminated from Cuso Financial Services in 2018 due to violations of company policy and “client service issues”. His termination triggered an investigation by the Financial Industry Regulatory Authority (FINRA). Coyne was subsequently barred from associating with any FINRA member in all capacities due to his refusal to fully cooperate with the investigation.
Cuso Financial Services
Based on the recent FINRA Brokercheck, here are the three disclosure events associated with CUSO FINANCIAL SERVICES, L.P:
- Disclosure Event 1:
- Reporting Source: Regulator
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Principal Sanction(s)/Relief Sought: Not specified
- Other Sanction(s)/Relief Sought: Not specified
- Date Initiated: 03/11/2019
- Docket/Case Number: 3-19079
- Principal Product Type: Mutual Fund(s)
- Allegations: Not specified but linked to IA RELEASE 40-5176 / MARCH 11, 2019 from SEC
- Current Status: Final
- Disclosure Event 2:
- Reporting Source: Regulator
- Initiated By: UTAH
- Principal Sanction(s)/Relief Sought: Civil and Administrative Penalt(ies) /Fine(s)
- Other Sanction(s)/Relief Sought: CENSURE
- Date Initiated: 04/05/2018
- Docket/Case Number: SD-18-0017
- Principal Product Type: No Product
- Allegations: Engaged in dishonest or unethical practices under the Utah Uniform Securities Act and failed to reasonably supervise under the same Act.
- Resolution Date: 11/29/2018
- Sanctions Ordered: Censure, Monetary/Fine of $100,000.00, Cease and Desist/Injunction Order
- Disclosure Event 3:
- Reporting Source: Regulator
- Allegations: A firm registered representative unsuitably solicited and sold to firm customers certain Unit Investment Trusts (UITs) that invested in closed-end mutual funds that employed leverage. The firm consented to the sanctions and to the entry of findings without admitting or denying the findings.
Disclosures Against Gerald Coyne
FINRA Brokercheck records reveal that Gerald T. Coyne has three separate disclosures: a customer dispute, a judgment/lien issue, and a regulatory disclosure issue. The team at Haselkorn & Thibaut, P.A., with their extensive experience in representing investors nationwide, are dedicated to resolving private Financial Industry Regulatory Authority (FINRA) customer disputes and assisting clients in recovering their investment losses.
Brokerage Firms Ratings
In an article published by Financial Advisor Magazine in October 2017, the Securities Litigation & Consulting Group (SLCG) took an unprecedented step by rating the 30 worst brokerage firms in the securities industry. The data from FINRA Brokercheck for the period 2007-2016 indicated that only 2.6% of brokers at firms with more than 200 brokers had customer complaints. This figure is generally considered an industry benchmark. Notably, Mr. Coyne has multiple disclosures on FINRA Brokercheck.
Concerns Over Variable Annuity Investments
For financial advisors at Cuso Financial Services or other broker-dealer firms who sell variable annuity investments, the judgment/lien issue related to Mr. Coyne, which seems to reference a tax lien, raises questions. These concerns pertain to how Mr. Coyne managed his personal finances and whether he might have been incentivized to recommend high-commission products such as variable annuities to customers.
About Haselkorn & Thibaut, P.A.
Haselkorn & Thibaut, P.A. is a law firm specializing in investment fraud. With over 45 years of combined legal experience, they represent both individual and institutional investors nationwide, aggressively pursuing claims and maximizing client recoveries from investment losses due to negligence or investment fraud.
FINRA Dispute Resolution
Investors suffering from investment losses may consider a FINRA Dispute Resolution customer dispute as a private, confidential, and efficient alternative to state or federal court litigation. Engaging experienced securities arbitration attorneys can be a crucial step in maximizing the potential recovery of investment losses.
The securities arbitration attorneys at Haselkorn & Thibaut, P.A. (InvestmentFraudLawyers.com) can provide comprehensive assistance throughout this process. The FINRA Dispute process is a private arbitration procedure between you and your brokerage firm, designed to be faster, more efficient, and less costly than court litigation.
For any questions related to your account or investments sold to you by Mr. Coyne or Cuso Financial Services, please call 1-888-885-7162 for a free consultation.
