Haselkorn & Thibaut, a national investment fraud law firm, has opened an investigation into Garden City, New York financial advisor John Coyle III following a recent investor complaint alleging unsuitable investment advice. The complaint, filed in May 2025, seeks damages of $2,023,505.16 related to allegedly unsuitable advice regarding liquidity asset lines while Mr. Coyle was representing Morgan Stanley.
Understanding John Coyle III’s Background at Morgan Stanley
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John Coyle III (CRD# 2435184) currently serves as a Family Wealth Director with Morgan Stanley’s The Founders Group, a specialized practice within the firm. With 31 years of securities industry experience, Mr. Coyle has been registered as a broker with Morgan Stanley since 2009 and as an investment advisor since 2020.
His professional profile highlights expertise in several key areas:
- Estate planning strategies
- Traditional and alternative investments
- Risk and liquidity management
- Philanthropy advisory services
The Family Wealth Director title indicates advanced training in managing the complex financial needs of ultra high net worth families, suggesting a focus on sophisticated investment strategies and comprehensive wealth management solutions.
Professional Qualifications and Registrations
Mr. Coyle maintains an extensive array of professional credentials that demonstrate his broad authorization to conduct securities business:
| Examination | Series Number | Purpose |
|---|---|---|
| Uniform Investment Adviser Law | Series 65 | Investment advisory services |
| Uniform Securities Agent State Law | Series 63 | State securities regulations |
| Securities Industry Essentials | SIE | Basic industry knowledge |
| Futures Managed Funds | Series 31 | Futures and managed funds |
| General Securities Representative | Series 7 | Broad securities transactions |
Additionally, Mr. Coyle holds 45 state licenses, enabling him to conduct business across virtually the entire United States.
Investor Complaints: What You Need to Know
Financial Industry Regulatory Authority (FINRA) records reveal two investor complaints filed against Mr. Coyle during his career:
Recent Complaint (May 2025)
- Allegation: Unsuitable advice to open liquidity asset lines
- Firm: Morgan Stanley
- Damages Sought: $2,023,505.16
- Status: Pending
Previous Complaint (2009)
- Allegation: Unsuitable stock investment recommendations
- Firm: Citigroup Global Markets
- Damages Sought: Unspecified
- Status: Denied by firm
Red Flags for Investors to Consider
When evaluating any financial advisor, investors should be aware of several potential warning signs. The presence of multiple complaints, particularly those alleging unsuitable investment advice, warrants careful consideration. Here are key factors to evaluate:
1. Pattern of Complaints: While two complaints over a 31-year career might not seem excessive, the nature of the allegations—both involving suitability issues—could indicate a concerning pattern.
2. Significant Damages: The recent complaint seeks over $2 million in damages, suggesting substantial alleged investor losses.
3. Liquidity Asset Lines: These financial products can be complex and may not be suitable for all investors, particularly if they involve leveraging assets or creating debt obligations.
4. Ultra High Net Worth Focus: Advisors working with wealthy clients may recommend sophisticated strategies that carry higher risks or complexity.
What Investors Should Do
If you’ve worked with John Coyle III or any financial advisor and have concerns about your investments, consider taking these steps:
- Review all account statements and investment recommendations
- Document any losses or concerns
- Gather all communications with your advisor
- Seek professional legal guidance to understand your options
Investment suitability is a fundamental obligation of financial advisors. Recommendations must align with your financial situation, investment objectives, risk tolerance, and investment timeline. When advisors fail to meet these standards, investors may have legal recourse to recover losses.
Understanding Your Rights as an Investor
Securities laws and FINRA rules provide important protections for investors. Financial advisors and their firms have duties to:
- Recommend only suitable investments
- Disclose all material risks
- Avoid conflicts of interest
- Provide accurate information about investments
- Follow your investment objectives and risk tolerance
When these obligations are breached, investors may be entitled to recover their losses through FINRA arbitration or other legal proceedings.
Take Action to Protect Your Financial Future
If you’ve suffered investment losses or have concerns about recommendations made by John Coyle III or any other financial advisor, don’t wait to seek help. Haselkorn & Thibaut has over 50 years of experience representing investors nationwide, with a 98% success rate and millions recovered for clients. Our team operates on a “no recovery, no fee” basis, meaning you pay nothing unless we successfully recover compensation for you.
Contact Haselkorn & Thibaut today at 1-888-885-7162 for a free, confidential consultation. Our experienced investment fraud attorneys can review your situation, explain your legal options, and help you understand the best path forward to potentially recover your losses. Time limits apply to investment fraud claims, so it’s important to act promptly to protect your rights.
