• July 31, 2023
• Infinex Investments

Derek Malone (CRD#: 5495233) is a registered Broker and Investment Adviser at Infinex Investments, Inc., in New York, NY.

Broker’s Background

He entered the securities industry in 2008 and previously worked for Essex National Securities, LLC; and LPL Financial Corporation.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in May 2023, a customer dispute was filed against Derek Malone. The allegation states, “Client’s allege the broker misrepresented the CD.” The customer dispute is pending and damages of $150,000 are requested.

In addition, Derek Malone has been the subject of six customer complaints and disclosures, including two that remain pending, including the following:

• May 2023 — “Client alleges broker misrepresented the CD.” The customer dispute is pending, and damages of $250,000 are requested.
• September 2021 — “Client claims to have been misled to believe REIT as safe, conservative, and liquid.” The customer dispute is pending, and damages of $44,000 are requested.
• November 2020 — “Client claims the rep made an unsuitable recommendation.” The customer dispute was settled for $55,000.
• November 2006 — A tax judgment/lien in the amount of $1,935 was imposed on Derek Malone.
• June 2005 — A tax judgment/lien in the amount of $2,055 was imposed on Derek Malone.
• January 2005 — A tax judgment/lien in the amount of $1,693 was imposed on Derek Malone.

For a copy of Derek Malone’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.