FINRA Bars Securities Broker in Florida For Declining to Cooperate With Investigation into Alleged Outside Business Activities

Jeffrey Max Cohen (CRD #2528929) is a formerly registered securities broker and investment adviser. FINRA lists Mr. Cohen as a resident of Panama City Beach, Florida. Most recently, this broker was associated with Moloney Securities Co., Inc. (2015 to 2021). In June of 2023, FINRA barred Jeffrey Max Cohen from the securities industry for declining to cooperate with a regulatory investigation into alleged unapproved outside business activities. Notably, eight different investor complaints involving Mr. Cohen were settled between 2019 and 2021. Here, our Miami selling away attorney provides a more detailed overview of the case.

Barred Broker: Jeffrey Max Cohen Previously of Moloney Securities Co., Inc.

 Following a series of investor complaints, the Financial Industry Regulatory Authority (FINRA) launched an investigation into former Moloney Securities Co., Inc. representative Jeffrey Max Cohen. Specifically, the agency was seeking information related to alleged unapproved outside business activities (OBAs). In violation of FINRA Rule 8210, Mr. Cohen declined to provide financial documents or on-the-record testimony. Without admitting or denying allegations of wrongdoing, the former Moloney Securities Co., Inc. representative consented to FINRA’s proposed sanctions, including an indefinite bar from the securities industry.

An Overview of FINRA’s Rule On Broker Outside Business Activities 

FINRA Rule 3270 mandates that registered persons notify their member firms in writing before engaging in any outside business activity. The intent is to prevent conflicts of interest, undisclosed financial dealings, or the misuse of client information. Once such a disclosure is provided by an individual representative, it is up to the member firm (broker-dealer) to assess the potential risks of these activities to ensure they do not compromise the interests of their clients. If a brokerage firm declines to approve a proposed outside business activity, the representative may not engage. If he or she does say, that can be deemed a violation of FINRA Rule 3270. A broker may face sanctions.

Broker Settled Eight Investor Complaints Between 2019 and 2021 

Eight customer complaints involving former Moloney Securities Co., Inc. representative Jeffrey Max Cohen between 2019 and 2021. As of September of 2023, all of the investor complaints have been settled. Here is an overview of the settlements:

• Unsuitable investment recommendations, settled for $700,000.
• Unsuitable investment recommendations, settled for $714,000.
• Unsuitable investment recommendations, settled for $100,000.
• Unsuitable investment recommendations, settled for $125,000.
• Unsuitable investment recommendations, settled for $95,000.
• Unsuitable investment recommendations, settled for $350,000.
• Unsuitable investment recommendations, settled for $80,000.
• Unsuitable investment recommendations, settled for $200,000.

Notably, Mr. Cohen provided a comment that is available via FINRA’s BrokerCheck tool for all eight of the investor complaints. Each comment emphasized his view that settlements were reached without any admission of wrongdoing before the matter could be arbitration.

 Contact Our Miami Securities Fraud Lawyer Today

At ​Carlson & Associates, P.A., our Florida investment fraud attorney is committed to helping investors secure the financial compensation that they deserve. Did you sustain investment losses because of your broker’s unapproved outside business activities? We can help. Call us now to arrange your initial appointment. We represent investors in Miami, South Florida, and beyond.

Source:

brokercheck.finra.org/individual/summary/2528929