Dennis J. Murphy (a/k/a Dennis James Murphy) (CRD# 4840274), a previously-registered broker, has been barred from the securities industry by the Financial Industry Regulatory Authority (FINRA) for failing to appear for testimony in connection with a FINRA investigation concerning his employer’s supervision of potentially unsuitable trading. Failing to cooperate with FINRA in this manner constituted a violation of FINRA Rules and Murphy was barred from associating with any FINRA member firm in any capacity.
Murphy began his career in the securities industry in 2004 and spent most of his career based in New York and New Jersey. Dennis J. Murphy was most recently registered with Monmouth Capital Management LLC from 2018-2019. Prior to that, he was registered with Woodstock Financial Group, Inc. from 2013-2018.
Murphy Failed To Appear For Testimony In A FINRA Investigation Into Unsuitable Trading
FINRA’s Letter of Acceptance, Waiver and Consent (AWC) notes that FINRA Rule 8210(a)(1) “may require a person subject to its jurisdiction ‘to provide information orally, in writing, or electronically . . . and to testify at a location specified by FINRA staff, under oath or affirmation . . . with respect to any matter involved in [a FINRA] investigation [or] examination.’”
According to the AWC, “in connection with an investigation concerning [Monmouth Capital Management]’s supervision of potentially unsuitable trading,” FINRA requested that Dennis J. Murphy provide on-the-record testimony, but Murphy failed to appear.
FINRA Rules governing “suitability” require that a broker have “a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable” based upon the investment profile of the customer. This “investment profile” includes such considerations as the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, and risk tolerance.
Furthermore, as evidenced by the FINRA investigation that resulted in Murphy’s bar, brokerage firms are required to supervise the conduct of their employees to ensure, among other things, that brokers are recommending suitable trades to customers.
Dennis J. Murphy Has A Civil Judgment And Tax Lien On His CRD Report
According to Murphy’s CRD Report, published by FINRA, in or around January 2018, Murphy was the subject of a $29,000 civil judgment. In or around October 2018, Murphy was the subject of a $177,000 tax lien.
When a broker has these types of events reported on his or her CRD Report, customers should be wary of investment recommendations intended solely to enrich the broker, who is experiencing personal financial hardship. This should also put brokerage firms on high alert to monitor a broker’s activity for these types of recommendations.
Murphy is currently facing one pending Customer Dispute in which the allegations include excessive and unnecessary trading on margin, false and misleading statements, misrepresentation, breach of fiduciary duty, fraud, unsuitability, negligence, churning, unauthorized trading, and excessive commissions. The customer in that dispute is seeking more than $20,000 in damages.
Did You Lose Money Investing With Dennis J. Murphy, Monmouth Capital Management, And/Or Woodstock Financial Group?
Silver Law Group represents investors claiming unsuitability, misrepresentations, negligent portfolio management, excessive trading and commissions, and more. If you or someone you know lost money investing with Dennis J. Murphy, Monmouth Capital Management, and/or Woodstock Financial Group, please contact Silver Law Group toll free at (800) 975-4345 or e-mail firstname.lastname@example.org for a confidential consultation. Our securities and investment fraud lawyers represent victims of broker misconduct nationwide.