Did you lose money investing with Kajie McMullen (CRD# 7052045)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Kajie McMullen. If you suffered losses investing with Kajie McMullen, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
As of January 9, 2023, Kajie McMullen’s FINRA BrokerCheck Report contains the following:
BARRED: FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
2 Regulatory Events
1 Employment Separation After Allegations
1 Financial Disclosures
March 11, 2022 – An Order Accepting Offer of Settlement was issued in which McMullen was barred from association with any FINRA member in all capacities. Without admitting or denying the allegations, McMullen consented to the sanction and to the entry of findings that she failed to provide a complete response to FINRA’s requests for information and documents in connection with its investigation into the circumstances of her termination from her member firm. The findings stated that the requested information and documents were necessary to determine whether McMullen improperly applied for and used Small Business Association grants and whether she failed to disclose her OBAs to her firm. McMullen initially called FINRA and confirmed receipt of its request. Among other things, McMullen stated that she did not have copies of some of the requested documents, including the applications she submitted to the Small Business Administration. FINRA suggested how McMullen could obtain copies of those documents. Subsequently, McMullen, through counsel, provided FINRA a partial response to the requests. That response was incomplete because McMullen failed to provide some of the information and documents that the requests sought, including the Small Business Association applications, bank records, and tax returns. McMullen also did not describe any efforts to obtain the Small Business Association applications. (FINRA Case #2020068502202)
Current and Previous Registrations
01/29/2019 – 10/30/2020 J.P. MORGAN SECURITIES LLC (CRD#:79) OAK BROOK, IL
Due Diligence Requirement
FINRA requires broker’s to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokers and the brokerage firms they work for that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
Request a Free Consultation with a Securities Attorney
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.