Former SII Investments and LPL Financial Broker Paul McGonigle Barred by FINRA After Refusing to Respond to Requests for Information
Paul McGonigle (CRD#: 1220690) was a previously registered Broker at LPL Financial, LLC in New Bedford, MA. He entered the securities industry in 1983 and previously worked for SII Investments, Inc; Royal Alliance Associates, Inc.; Integrated Resources Equity Corporation; IDS Financial Services, Inc.; and American Express Financial Advisors, Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in August 2020, FINRA sanctioned Paul McGonigle, barring him from associating with member firms in any capacity indefinitely, starting on November 16, 2020. The FINRA sanction states, “Respondent McGonigle failed to respond to FINRA request for information.”
In addition, Paul McGonigle has been the subject of one customer complaints:
● January 2007–”CLIENT ALLEGES EXCESSIVE TRADING AND CHURNING; UNSUITABLE PURCHASING AND SURRENDERING OF ANNUITY PRODUCTS INCLUDING FIXED AND VARIABLE AND UNSUITABLE TRADING OF MUTUAL FUNDS INCLUDING CLASS B BEGINNING ON MAY OF 2000.” The customer dispute was settled for $247,500.
For a copy of Paul McGonigle’s FINRA BrokerCheck, click here.
Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.
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. 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.
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 firstname.lastname@example.org.