Janney Montgomery Stockbroker Barred In Theft Investigation
John Joseph Cahill of Upper Saddle River New Jersey a stockbroker formerly registered with Janney Montgomery Scott LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to furnish information and documentation to FINRA during the time that he was investigated for theft of customer funds. Letter of Acceptance Waiver and Consent No. 2019061661601 (Jan. 2, 2020).
According to the AWC, an investigation into Cahill commenced around the time that FINRA received a Form U5 from Janney Montgomery Scott LLC which revealed that Cahill was terminated by the securities broker dealer for failing to identify his relationship with a customer, and that the stockbroker was designated as a power of attorney for a customer. FINRA subsequently commenced an investigation into allegations of Cahill’s conversion of an elderly customer’s funds.
On November 1, 2019, Cahill was sent a request from FINRA which called upon him to provide information and documentation to the regulator concerning the conversion allegations. The AWC stated that Cahill was also asked to testify for FINRA personnel on December 6, 2019 in order to comply with FINRA Rule 8210. Cahill was warned by this time that his failure to cooperate could lead to sanctions including a permanent bar from the securities industry.
FINRA stated that it received a letter from Cahill’s legal counsel on November 18, 2019 which indicated that Cahill understood what FINRA requested of him but that the stockbroker would neither hand over any information or documentation nor testify in FINRA’s investigation. Cahill was found by FINRA to have violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure additionally reveals that Cahill has been referenced in a customer initiated investment related written complaint which was settled for $42,100.00 in damages on March 13, 2012 based upon accusations that during the time that Cahill was associated with Morgan Stanley Smith Barney, common and preferred stock transactions effected in the customer’s account were not suitable for the customer and had caused the customer to incur unwarranted losses.
Cahill was terminated from Morgan Stanley Wealth Management supported by allegations that he effected trades in customer accounts without contacting customers in violation of the securities broker dealer’s compliance policies or procedures. His registration with Janney Montgomery Scott was terminated on March 1, 2019.