A former JP Morgan financial advisor, Rick Konecny, has been accused by
former clients of recommending unsuitable investments, unauthorized trading
and overconcentration. Rick Konecny was discharged from JP Morgan in 2016
for failing to escalate client matters and follow requirements with respect
to execution of trades on a discretionary basis.
Former clients of Konecny claim that while at JP Morgan, he neglected his
duty to recommend suitable and appropriate investments for his clients.
Some of Rick Konecny’s former clients claim that he and his former
employers, JP Morgan and UBS financial, are liable for their investment
losses. Rick Konecny has also worked for National Securities Corporation
and Morgan Stanley & Co. He has always worked in Chicago.
One dispute totaling $470,000 from April of this year is still pending
against Rick Konecny. Rick Konecny has two settled disputes. One settled
for $180,000 and the other settled for $375,000. Both settled disputes
are from March of 2016. They both are for allegations of unsuitable and
unauthorized trading and overconcentration. Konecny was also accused of
overconcentration in 2004 in a dispute that was closed.
Victims of Rick Konecny claim that he recommended the following investments;
- Sandridge Energy Inc. (SD)
- Yamana Gold Inc. (AUY)
- Cliffs Natural Resources Inc (CLV)
- Arch Coal Inc. (ACI)
- Exco Resources (XCO)
- Imagold Corp (IAG)
- Moly Corp (MCPIQ)
Brokers and financial advisors are obligated to recommend suitable investments
to their clients. An investment is unsuitable if the client cannot afford
the potential losses or does not understand the risks associated with
the investment. Unsuitability also occurs when the investment does not
match the client’s goals.
With few exceptions, investment brokers must obtain client authorization
before buying or selling stocks. To do otherwise is “unauthorized
trading” and violates financial laws and ethical obligations.
Unauthorized trading can be conducted by individual brokers, but can also
be firm-wide. In either scenario, the investor suffers a loss. Unauthorized
trading is sometimes covered up by fabricated records, but if the client
has enough evidence that the trading was unauthorized, they can recover
monetary damages for investment losses due to the trade.
Overconcentration occurs when an investment portfolio is narrowly focused
in one asset type, class, or sector and subject to increased risk and
potential catastrophic loss. Investments in only one or very few stocks,
asset class, or single sector of the economy all face increased risk of
overconcentration and heavy losses.
If you are an investor who has lost money from investments that may have
been improper, the attorneys at Meyer Wilson are interested in helping
you determine if you have been a victim of potential unsuitable investments,
unauthorized trading or overconcentration. The attorneys at Meyer Wilson
can answer any questions you may have during a no-cost, no-obligation
consultation to discuss your case.