Regulator Sanctions UBS Stockbroker For Fraud
John Cochran Maccoll of Birmingham Michigan a stockbroker registered with UBS has been stripped of his stockbroker license or investment adviser representative license based upon accusations that (1) the stockbroker violated securities laws or regulations and (2) the stockbroker was expelled by a securities regulator based upon accusations of his misconduct in the securities industry. Michigan Corporations Securities and Commercial Licensing Bureau Order No. 336201 (May 17, 2019).
Maccoll has been barred by Securities and Exchange Commission (SEC) from associating with any securities broker dealer or investment adviser founded on a judgment being entered against the stockbroker in which he was permanently enjoined from engaging in violations of federal securities laws or rules. Securities and Exchange Commission v. Maccoll Order No. 3-18911 (Dec. 3, 2018).
According to SEC’s Complaint preceding this bar, between 2008 and 2018, fifteen of the stockbroker’s customers were defrauded out of $4,000,000.00 by investing in a purported private fund through Maccoll. The Complaint stated that the customers’ funds were not invested by the stockbroker according to the representations he made. Allegedly, Maccoll stole customers’ funds; provided customers with bogus statements regarding investments; and repaid some customers in a manner not unlike a Ponzi scheme.
FINRA Public Disclosure indicates that Maccoll is the subject of seventeen total customer initiated investment related disputes pertaining to allegations of his bad business practices during the period in which he was employed by securities broker dealers including UBS Financial Services Inc.
Specifically, on August 4, 2018, a customer initiated investment related complaint pertaining to Maccoll’s conduct had been settled for $158,163.76 in damages supported by allegations that when Maccoll was employed by UBS Financial Services, the customer’s private placement funds were misappropriated. Another customer initiated related arbitration claim in reference to Maccoll’s conduct has been settled to resolve accusations that when Maccoll was associated with UBS Financial Services, the customer was charged an unreasonable amount in commissions or fees; equities trades were effected excessively; inaccurate statements were made to the customer concerning the risks of investments; and the customer was poorly advised. (FINRA) Arbitration No. 18-03288 (Apr. 22, 2019).
Maccoll was discharged by UBS Financial Services on March 15, 2018 based upon allegations that the stockbroker failed to comply with the securities broker dealer during the time that he was the subject of an internal investigation concerning his possible violations of securities rules or “company policies” which apparently prohibit the theft of customer funds.