Securities Arbitration Lawyers BlogChicago-based National Securities Corporation Broker Rick Konecny Under Investigation For Overconcentration and Unsuitable Investment Recommendations
Rick D. Konecny
CRD#1727785
Silver Law Group is investigating former Chicago, Illinois-based National Securities Corporation broker Rick Konecny, after multiple customer allegations of misrepresentation, unsuitable recommendations and overconcentration were received by FINRA.
According to FINRA’s BrokerCheck report on Konecny, a complaint was filed in August of 2017 alleging that during his time at UBS Financial Services he engaged in; unsuitability and misrepresentation and over concentration. Damages relating to this complaint totaled $3,700,000. The complaint is currently pending FINRA arbitration.
Another FINRA compliant was filed in April of 2017 that alleged unauthorized trading and unsuitable trading while Konecny was employed by J.P Morgan Securities. The securities arbitration claims relate to losses in oil, gas and energy sectors. This complaint alleged $470,000 in damages and is also currently pending FINRA arbitration.
Konecny is not currently employed by a FINRA affiliated brokerage firm. Previously he was employed with National Securities Corporation and UBS Financial Services.
Among other investment tenets, brokers are required to recommend suitable investments to their clients. This requires that the broker: Investigates and conducts due diligence into the investment’s attributes including its benefits, risks, tax consequences, and other relevant factors to form a reasonable basis for the recommendation of the product; and appropriately matches the investment with the customer’s specific investment needs and objectives, such as the customer’s retirement status, long or short-term goals, age, disability, income needs, or any other relevant factors.
The misrepresentation or omission of material facts concerning investment recommendations by a brokerage firm and its representatives may be a cause of action in a FINRA arbitration claim for damages. There are two types of misrepresentations and omissions; those that are fraudulent and those that are negligent.
Misrepresentations often occur during the offering process or prior to investing in a particular product. Misrepresentation can vary in appearance and, if made intentionally, are often times made in order to induce an unwitting investor to invest. An example of a misrepresentation can include promises of high dividends or that the company of the underlying investment will go public in a year.
If proven, an intentional misrepresentation can have serious consequences, as it is a violation of Rule 10b-5 of the Securities Exchange Act of 1934.
FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unauthorized trading. The Silver Law Group works on a contingency fee basis, meaning you pay us nothing unless we recover money for you.
Contact Our Firm if You’ve Invested with Rick Konency
If you invested with Rick Konency and National Securities Corporation, J.P Morgan Securities or UBS Financial and have lost money doing so, you may be able to recover some or all of your losses. We are experienced in recovering investor losses due to broker/brokerage firm misconduct and mismanagement through FINRA arbitration.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll-free at (800) 975-4345.