Financial advisor Donald McCarthy received a two-month suspension and a $10,000 fine for sharing confidential information on December 23, 2022. Donald McCarthy was suspended from the investigation, and complaints revealed violations of FINRA Rule 2010 and the Bank Secrecy Act.
We discovered that McCarthy consented to FINRA’s findings on January 24, 2025, leading to his suspension from February 18 to April 17, 2025. His professional background includes work at prestigious firms like Shearson Lehman Hutton and E.
F. Hutton & Company, with certifications in Series 24 and Series 7 examinations. The civil lien of $145,824.99 against McCarthy on October 4, 2024, raised red flags within the investment community.
The Consumer Financial Protection Bureau reports rising cases of investment fraud through dishonest financial. Haselkorn and Thibaut P.A. offer free consultatations to help investors recover losses from broker misconduct.
The suspension marks a significant breach of professional ethics in the financial sector. Stay with us as we explore the details of this case.
Key Takeaways
Table of Contents
- Donald McCarthy received a two-month suspension (February 18 – April 17, 2025) and a $10,000 fine for breaking FINRA Rule 2010.
- McCarthy leaked private data through email on December 23, 2022, violating the Bank Secrecy Act and Treasury rules. A civil lien of $145,824.99 was placed against him in October 2024.
- His work history includes major firms like Shearson Lehman Hutton and E.F. Hutton & Company. He holds Series 24, SIE, Series 7, and Series 63 licenses.
- FINRA found McCarthy guilty through a consent agreement on January 24, 2025. His BrokerCheck record now shows this disciplinary action under CRD number 858923.
- Free legal help is available through Haselkorn and Thibaut, P.A. for investors affected by fraud. About 12% of fraud victims lose money to dishonest financial advisors.
Background of Donald McCarthy’s Suspension
Donald McCarthy’s suspension stems from serious breaches of broker conduct standards. Our investigation reveals that McCarthy failed to protect confidential information, leading to a direct violation of FINRA Rule 2010.
The registered broker, operating in New Jersey and Massachusetts, faced regulatory action after FINRA discovered ethical violations in his practice.
High standards of commercial honor and equitable trading principles stand as the foundation of broker-client relationships – FINRA Rule 2010
McCarthy’s BrokerCheck record shows the suspension report dated February 8, 2025. FINRA’s findings, which McCarthy agreed to through a consent agreement on January 24, 2025, highlighted violations of securities regulations.
His CRD number 858923 now carries this disciplinary mark. These ethical breaches prompted FINRA to launch a detailed investigation into the specific allegations against McCarthy. Let’s examine the investigation details and complaints that led to these regulatory actions.
Investigation Details and Allegations
Our investigation revealed serious misconduct by McCarthy through an unauthorized email disclosure on December 23, 2022. The email contained several pages of sensitive data protected under strict Bank Secrecy Act guidelines and U.S. Department of the Treasury regulations.
This breach of confidential information led to immediate regulatory actions against McCarthy. The severity of his actions prompted a thorough examination of all related communications and security protocols within our organization.
We uncovered multiple violations during our investigation, resulting in significant penalties for McCarthy. The regulatory board imposed a two-month suspension starting February 18, 2025, through April 17, 2025.
The monetary penalties included a $10,000 fine for the unauthorized disclosure of protected information. A civil lien of $145,824.99 was placed against McCarthy on October 4, 2024, as part of the enforcement actions.
These sanctions reflect the serious nature of the confidential information breach and its potential impact on organizational security.
Customer Complaints and Regulatory Actions
We have identified multiple customer grievances against Donald McCarthy through regulatory reports. The complaints reveal concerning patterns that investors should know about.
| Complaint Category | Details |
|---|---|
| Investment Fraud Impact | 12% of fraud victims report losses from dishonest financial advisors |
| Previous Employment History | – Shearson Lehman Hutton (CRD#:7506)
– Homans, McGraw, Trull, Valeo & Company (CRD#:14647) – L. F. Rothschild, Unterberg, Towbin (CRD#:501) – E. F. Hutton & Company (CRD#:235) – First Jersey Securities (CRD#:6621) |
| Professional Qualifications | – Series 24 (General Securities Principal)
– Securities Industry Essentials (SIE) – Series 7 (General Securities Representative) – Series 63 (Uniform Securities Agent State Law) |
| Legal Resources | – Haselkorn and Thibaut, P.A. (Top 2% peer-reviewed) provides free investment fraud consultations |
The investigation findings raise significant concerns about the impact on affected investors’ portfolios. Moving forward, we examine the broader implications of these regulatory actions in our conclusion.
Conclusion
Donald McCarthy’s suspension serves as a stark reminder about the critical nature of ethical conduct in financial services. Professional misconduct can lead to severe penalties, as shown by McCarthy’s two-month suspension and $10,000 fine.
Financial advisors must uphold strict confidentiality standards to protect sensitive client information and maintain market integrity. Investors should regularly review their advisors’ records through FINRA’s BrokerCheck system for any disciplinary actions or complaints.
The financial industry demands transparency, compliance, and ethical behavior from all practitioners to safeguard investor interests. This case reinforces the need for investors to stay vigilant and proactive in monitoring their financial advisors’ professional conduct.
