Legal Matters

The Financial Industry Regulatory Authority (“FINRA”) has permanently barred Capital City Securities representative Clint H. Keneer from the securities industry based on his refusal to give testimony during FINRA’s investigation into allegations that he made unsuitable investment recommendations to his customers. Keneer was previously sanctioned in 2010 for recommending unsuitable investments of below investment grade (“junk”) bonds to another couple who were his customers. Likewise, Keneer had been sanctioned for mismarking customer order tickets and engaging in unauthorized trading in at least six customer accounts. Keneer’s FINRA BrokerCheck report shows that he was fired by Stifel Nicolaus in 2008 following the unauthorized trading allegations. Capital City Securities, LLC, of Powell, Ohio, hired Keneer in 2012 even though by that time Keneer had already racked up five customer disputes against him, two regulatory suspensions, and had been fired by Stifel Nicolaus. Stockbrokers have a duty to know the important facts pertaining to their customers’ investment objectives, risk tolerance, experience, investment time [...]

The Financial Industry Regulatory Authority (“FINRA”) has fined and sanctioned NYLife Securities, LLC for supervisory failures related to sales of higher-risk mutual funds that were subject to significant volatility. FINRA found that, from September 2014 to December 2016, NYLife adjusted its customers’ risk tolerances and investment objectives to accommodate sales of higher-risk mutual funds without first seeking its customers’ input. The unapproved adjustments caused an unsuitable overconcentration of high-risk mutual funds in customer accounts, leading to losses totaling $1.4 million. FINRA’s rules require a brokerage firm to establish, maintain, and enforce written procedures to supervise its associated persons and require member firms to have a reasonable basis for believing every transaction or strategy it recommends is suitable for the customer. By failing to follow its supervisory procedures and by soliciting unsuitably high-risk transactions, NYLife Securities was deemed in violation of FINRA’s rules. NYLife’s FINRA BrokerCheck Report reveals eleven additional instances of regulatory events involving the firm. As a result of [...]

For the sixth consecutive year, Frankowski Firm attorney Robert Norton has been recognized by Super Lawyers magazine as a Rising Star in securities litigation in the Mid-South region. The Rising Star designation is awarded to only 2.5% of attorneys in the Mid-South under age 40.  The annual selections for Super Lawyers, an independent lawyer rating publication, are made using a combination of peer nominations, evaluations and independent research. Each candidate is assessed using 12 indicators of peer recognition and professional achievements. Rob is licensed to practice in Alabama, Georgia, and before the 11th Circuit Court of Appeals. For the past ten years, Rob has practiced in the field of securities litigation, which includes court actions and arbitration claims involving stockbroker fraud and neglect and brokerage firm misconduct. Rob graduated magna cum laude from the University of Alabama in 2002, with honors as a Presidential Scholar and Phi Beta Kappa member. Rob worked as a policy intern at the White House [...]

The Financial Industry Regulatory Authority (“FINRA”) has barred former Janney Montgomery Scott and Morgan Stanley broker John Joseph Cahill based on FINRA’s findings that Cahill refused to cooperate with FINRA’s investigation into allegations that Cahill comingled and/or took money belonging to his elderly client. According to Mr. Cahill’s FINRA BrokerCheck report, Cahill was fired by Janney Montgomery Scott in March 2019 during an internal review into his receipt of funds while acting as a Power of Attorney for a client while still at Morgan Stanley. Following his termination, FINRA Enforcement opened an investigation into the allegations that Cahill comingled and/or took funds belonging to an elderly customer for whom he also served as Power of Attorney. FIRNA sent Cahill a letter on November 1, 2019, requesting the production of documents and information and ordering Cahill to appear for on-the-record testimony on December 6, 2019. Cahill refused to comply with FINRA’s requests, which is a violation of FINRA Rules 8210(a)(1) and [...]