Derek Malone (CRD# 5495233), a well-experienced financial advisor in New York City, finds himself at the center of a brewing storm as a flurry of investor complaints accuses him of misrepresenting investments. With a dual role as a broker and investment advisor at Infinex Investments, Malone now faces the repercussions of alleged misconduct, having been previously associated with Essex National Securities.
According to records from the Financial Industry Regulatory Authority, four investor complaints have emerged on Mr. Malone’s BrokerCheck report, painting a concerning picture of his dealings with clients and investments. The complaints against Derek Malone raise questions about the suitability of investments, emphasizing the importance of carefully evaluating and managing investments within a customer’s account to meet their individual needs and objectives.
The Echo of Accusations in Investment Losses
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Now, you might ask, how severe is the situation? To give you a lay of the land, four investor complaints have surfaced on Mr. Malone’s BrokerCheck report. It’s like an echo in a cave as the accusations reverberate across time and investment types. As a member of the financial advisory community, it is expected that Mr. Malone would have a reasonable basis to believe that his recommendations were suitable for his clients based on their investment profiles, highlighting the importance of customer-specific suitability obligations.
Take the most recent claim, cast in the concrete timelines of May 2023. It asserts that while playing his role at Infinex Investments, Mr. Malone manipulated the true nature of a certificate of deposit (CD). The implications? A towering claim of damages amounting to $250,000 left hanging over him.
But remember the echo? Just days before, another investor complaint was lodged in May 2023, mirroring the earlier allegations. Again, as an Infinex representative, Mr. Malone stands accused of misrepresenting a CD product, with an outstanding demand for a redress of $150,000 in damages.
Even going back to 2021, Mr. Malone wasn’t a stranger to controversy. Back then, investors cried foul, accusing him as an Essex National Securities representative of painting a rather rosy picture of a Real Estate Investment Trust (REIT) product as “safe, conservative, and liquid. The growing list of allegations came with a price tag of another $44,000 in damages.
Our chronicle doesn’t end there. Rewind one more year to 2020, he faced a complaint of recommending an unfit real estate investment. That storm calmed with a settlement of $55,000 in 2021.
The Puzzling Enigma
Enigmatic. How is a man with 15 impressive years of securities industry experience embroiled in such controversies? Since 2016, he has been a broker and investment advisor with Infinex Investments. His professional journey encompasses stints at Essex National Securities (New York, New York; 2010-2016) and LPL Financial Corporation (New York, New York; 2008-2010), highlighting his prior roles and experiences in the financial services industry before his current position.
He possesses credentials backed by the passage of three significant securities industry validating exams: the General Securities Representative Examination (Series 7), the Securities Industry Essentials Examination (SIE), and the Uniform Combined State Law Examination (Series 66). Yet, here we are.
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