In October 2018, a former client of UBS Financial Services Inc., Moloney Securities Co., Inc., Moloney Investment Advisory, LLC, and Moloney Securities Asset Management, LLC won an award in a FINRA arbitration for compensatory damages for losses sustained from over-concentrated investments in the energy sector.
Moloney Securities Co., Inc. and Moloney Securities Asset Management, LLC were found to be jointly and severally liable for and shall pay to claimant the sum of $300,000.00 in compensatory damages.
The causes of action included violation of the Missouri Securities Act RSMo. §409.411; breach of fiduciary duty; fraud, including unsuitability, misrepresentations and omissions; negligence and negligent misrepresentation, including failure to supervise; breach of contract; and violations of the Securities and Exchange Act of 1934, including Section 10(b) and Rule 10b-5 promulgated thereunder. The causes of action related to the claimant’s allegation that the respondents over-concentrated the claimant’s accounts in energy and limited partnerships, and other speculative and aggressive growth securities, contrary to the claimant’s investment goals. The FINRA arbitration hearing was conducted in Kansas City, Missouri.
Over the past few years, oil prices have significantly declined. A supply glut in 2014 and 2015 led to some of the lowest prices the market has seen in recent years. In turn, securities values also dropped. The volatile energy sector experienced significant turmoil, and many energy companies were negatively impacted when global crude oil prices fell below $40 per barrel at the end of 2015. This was the lowest level since early 2009, as supply was in excess of global demand. Oil and gas companies experienced a spike in bankruptcies, which have left many investors reeling.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, UBS Financial Services Inc., Moloney Securities Co., Inc., Moloney Investment Advisory, LLC, and Moloney Securities Asset Management, LLC may be liable for investment or other losses suffered by its customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.