Regulator Sanctions Moors Cabot Stockbroker For Suitability
Phillip Robert Cheney Jr. of Norwell Massachusetts a stockbroker currently registered with Moors Cabot Inc. has been sanctioned by the State of Massachusetts Securities Division based upon findings that Cheney has been subject of customer disputes and has been terminated from at least one securities broker dealer founded on accusations of Cheney’s unsuitable investment transactions in customer accounts. Case No. R-2018-0060 (May 16, 2018).
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Cheney is referenced in five customer initiated investment related disputes pertaining to allegations of his misconduct during the time that he was associated with securities broker dealers including Wachovia Securities LLC and RBC Capital Markets LLC. In particular, a customer filed an investment related complaint regarding Cheney’s conduct where the customer sought unspecified damages based upon accusations that transactions were executed in the customer’s account that were not suitable for the customer.
Subsequently, a customer filed an investment related complaint involving Cheney’s activities in which the customer requested damages estimated to exceed $5,000.00 supported by allegations that the customer was placed into an annuity which failed to produce the returns that had been represented to the customer at the time of purchase; and the customer’s assets failed to be allocated in mutual funds contrary to the customer’s expectations.
Cheney is also the subject of a customer initiated investment related complaint where the customer sought more than $5,000.00 in damages founded on accusations that excessive class B mutual fund share trades had been placed in the customer’s account; and the customer was excessively charged on the mutual fund investments held in the customer’s portfolio.
On October 3, 2017, another customer initiated investment related complaint concerning Cheney’s conduct was settled for $50,000.00 in damages based upon allegations that between July of 2015 and February of 2017, while associated with RBC Capital Markets LLC, Cheney made misleading statements to the customer in regard to the customer’s investments in stock and over-the-counter equities; placed the customer in speculative investments that were not suitable for the customer given the customer’s objectives for investing and tolerance for risk; and effected excessive trades in the customer’s account.
Thereafter, on October 12, 2018, a customer initiated investment related complaint regarding Cheney’s activities was resolved for $122,500.00 in damages supported by accusations that energy-sector master limited partnership trades had been executed in the customer’s investment account on an excessive basis causing the customer to incur investment losses.
On December 7, 2017, Cheney was terminated by RBC Capital Markets LLC founded on allegations that Cheney gave customers of the firm bad investment advice; conduct violative of the firm’s policies on investment recommendations. The Massachusetts Securities Division found the accusations of Cheney’s misconduct as referenced in the customer complaints and employment termination to justify the sanctions and conditions it placed on his securities registration in the state.
Cheney has been employed by Moors Cabot Inc. since February 5, 2018.