According to public records released by the Financial Industry Regulatory Authority (FINRA), eight customers have recently filed claims against former JP Morgan and UBS Broker Rick Douglas Konecny and FINRA has permanently barred Konecny from associating with firms registered with FINRA.
Rick Konecny worked out of branch offices located in Chicago, Illinois and was registered as a General Securities Representative and Investment Advisor Representative with UBS from November 2008 through July 2013 and JP Morgan from July 2013 through April 2016. JP Morgan reported that it discharged Konecny in March 2016 for allegedly failing to follow requirements when he exercised discretion in making trades on behalf of his customers.
The eight customer complaints—filed from February 2016 through January 2018—alleged Rick Konecny caused customers losses by unsuitably recommending investment strategies involving energy and natural resource stocks, which included:
- Exco Resources (XCO);
- Moly Corp (MCPIQ);
- Arch Coal Inc. (ACI);
- Cliffs Natural Resources Inc (CLV);
- Sandridge Energy Inc. (SD);
- Imagold Corp (IAG); and
- Yamana Gold Inc. (AUY).
Five claims are pending and allege Rick Konecny’s conduct occurring from July 2013 through either October 2015 or March 2016 caused collective losses of $4.87 million. The other three claims settled as follows:
- Alleged losses of $470,000—settled in April 2017 for $315,000;
- Alleged losses of $400,000—settled in March 2017 for $180,000; and
- Alleged losses of $1,000,000—settled in February 2017 for $375,000.
In November 2017, FINRA barred Rick Konecny for his alleged failure to provide records in response to FINRA’s investigation into him and his failure to pay an arbitration award to his former employer. Konecny is currently associated with National Securities Corporation and working in Chicago.
Options to Pursue a Recovery of Investment Losses
Rules and regulations require brokers and advisors, like Rick Konecny, recommend only suitable investment products and strategies to their customers. Suitability is based on factors such as a customer’s age, investment objective, risk tolerance, investment experience, and financial status and needs. Additionally, rules require brokers to obtain express written authority from customers before making decisions on behalf of the customers to place trades or otherwise manage their accounts. However, when brokers make decisions on behalf of their customers, they owe their customers a greater duty of care, even if the brokers did not properly obtain authority to make those decisions.
Further, brokerage firms, like JP Morgan and UBS, have a duty to closely monitor and supervise their brokers’ and investment advisor’s conduct to ensure they follow securities rules and regulations. That includes supervising brokers to ensure they only recommend suitable investment products and strategies. A firm’s duty to supervise its broker’s conduct is heightened when the broker makes decisions on behalf of a customer, even if the broker was not properly granted such authority.
When brokers and firms breach these duties to their customers, customers have a right to pursue claims to recover their investment losses caused by such misconduct. Moreover, brokerage firms are often found liable for their brokers’ misconduct.
If you have suffered investment losses with Rick Konecny, contact Marquardt Law Office LLC to speak with a securities attorney and receive a free evaluation of options to recover your losses.
Marquardt Law Office LLC is a securities law firm located in Chicago, IL representing clients nationwide who have suffered losses due to misconduct such as fraud and negligence.