John Patock, a broker and investment advisor at Moloney Securities Co., Inc., is facing allegations of suitability and negligence in a pending customer dispute filed on January 19, 2024. The complaint, which involves corporate debt products, seeks damages of $2,021,000. Patock has refuted the allegations, stating, “I refute the allegations of the claims.”
The dispute is currently under investigation, and no resolution has been reached as of yet. Moloney Securities Co., Inc., based in Minnesota, has employed Patock as a broker since February 17, 2017. He is still registered as a broker and investment advisor with the firm, according to his FINRA BrokerCheck report.
Haselkorn & Thibaut, a national investment fraud law firm with offices in Florida, New York, North Carolina, Arizona, and Texas, is currently investigating John Patock and Moloney Securities Co., Inc. regarding the suitability and negligence allegations. With over 50 years of combined experience and a 98% success rate, Haselkorn & Thibaut has a proven track record of helping investors recover losses through FINRA arbitration. They offer free consultations and operate on a “No Recovery, No Fee” basis. Investors can contact them toll-free at 1-888-885-7162 .
Understanding Suitability and Negligence in Securities Disputes
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Suitability and negligence are two common issues that arise in securities disputes. FINRA Rule 2111, known as the “Suitability Rule,” requires brokers and investment advisors to have a reasonable basis for believing that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s investment profile. This profile includes factors such as age, financial situation, investment objectives, and risk tolerance.
Negligence, on the other hand, refers to a failure to exercise reasonable care in managing a client’s investments. This can include actions such as failing to properly diversify a portfolio, not adequately explaining the risks associated with an investment, or recommending unsuitable investments. According to a Forbes article, investment fraud and bad advice from financial advisors have been on the rise in recent years, with the COVID-19 pandemic exacerbating the issue.
The Importance of Suitability and Due Diligence for Investors
Suitability and due diligence are crucial considerations for investors when working with a financial advisor or broker. Investors should ensure that their investment professional thoroughly understands their financial situation, goals, and risk tolerance before making any recommendations. It is also essential for investors to ask questions, request explanations of any unfamiliar terms or products, and carefully review all documents before making investment decisions.
When suitability and due diligence are not properly addressed, investors may find themselves in situations where they have suffered significant losses due to inappropriate or negligent investment advice. In such cases, investors may be able to recover damages through FINRA arbitration.
Recognizing Red Flags and Seeking Help for Investment Losses
Investors should be aware of potential red flags that may indicate financial advisor malpractice or negligence. These can include:
- Recommendations that seem inconsistent with the investor’s goals or risk tolerance
- Pressure to make quick decisions or invest in unfamiliar products
- Lack of clear communication or explanation regarding investments
- Unexplained or excessive account losses
If an investor suspects that they have been the victim of financial advisor malpractice or negligence, they should consider seeking the assistance of an experienced investment fraud law firm. Haselkorn & Thibaut offers free consultations to help investors understand their rights and options for recovering losses through FINRA arbitration.
The Benefits of Working with an Experienced Investment Fraud Law Firm
Navigating the complexities of securities disputes and FINRA arbitration can be challenging for investors. By working with a knowledgeable investment fraud law firm like Haselkorn & Thibaut, investors can benefit from:
- Extensive experience in handling securities disputes and FINRA arbitration cases
- A deep understanding of the laws and regulations governing the securities industry
- A proven track record of successfully recovering losses for investors
- Personalized attention and guidance throughout the legal process
With their impressive 98% success rate and commitment to fighting for investors’ rights, Haselkorn & Thibaut is well-positioned to help investors who have suffered losses due to financial advisor malpractice or negligence. Their “No Recovery, No Fee” policy ensures that investors can seek the help they need without added financial strain.
As the investigation into the allegations against John Patock and Moloney Securities Co., Inc. unfolds, investors who believe they may have been affected by unsuitable or negligent investment advice should not hesitate to reach out to Haselkorn & Thibaut for a free consultation by calling 1-888-885-7162 .
