Jimmy Monken Embroiled in $750K Investor Dispute

Jimmy Monken Embroiled in $750K Investor Dispute

Jimmy Monken (CRD# 5765921), a broker registered with Morgan Stanley, is involved in investor disputes seeking six-figure damages. MDF Law is investigating the Clayton, Missouri representative for conduct similar to that alleged in the disputes, which are contained in his Financial Industry Regulatory Authority (FINRA) BrokerCheck profile, accessed on October 7, 2023. Call an attorney immediately if you lost money or otherwise have complaints. 

Pending Disputes Allege Misrepresentation, Unsuitable Trading

Two parties of investors lodged disputes involving Mr. Monken between July and September 2023. The disputes allege that he misrepresented investments and implemented an unsuitable trading strategy. One of the two disputes, which both remain pending, seeks unspecified damages, while the other seeks $750,000 in damages.

What Is Regulation Best Interest?

The Securities and Exchange Commission’s Regulation Best Interest establishes a requirement by which brokers must act in their retail customers’ best interests. Also known as Regulation BI, it is not as strict as the fiduciary duty that investment advisers owe to their clients, though it creates similar obligations: the need for brokers to disclose information regarding their recommendations, for instance, and a requirement that broker-dealer firms create policies to mitigate conflicts of interest. The rule is similar to FINRA’s suitability standard, defined in FINRA Rule 2111, under which brokers must tailor their recommendations to an investor’s profile: their objectives, risk tolerance, and other factors, including their background and liquidity needs.

FINRA Rule 2020 Forbids Misrepresentation

Industry rules also forbid brokers from making misrepresentations of material information regarding the investments they recommend. FINRA Rule 2020 specifically establishes that they may not use “any manipulative, deceptive or other fraudulent device or contrivance” when effecting securities transactions. Misrepresentations risk leading investors to invest unsuitably, which may in turn expose them to the risk of substantial losses.

FINRA: Jimmy Monken Based in Clayton, Missouri

Jimmy Monken launched his career as a broker when he joined Morgan Keegan & Company in 2010, registering with the firm’s office in Town and Country, Missouri. He remained at the firm until 2012, when he departed for Morgan Stanley’s branch office in Clayton, Missouri. With 13 years of experience as a broker, he has completed three securities industry exams, including the Series 66 and the Series 7. 

MDF Law Advocates for Investors

MDF Law’s veteran broker fraud attorneys have recovered tens of millions in investment losses for their clients. Our team takes cases on a contingency basis, meaning we only collect a fee when our clients win. We offer free consultations to investors nationwide. If you lost money on investments recommended by Jimmy Monken, call 800-767-8040 to speak with an attorney today.

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