Lorraine Gallette: Disputes Seek 7-Figure Damages

Lorraine Gallette (CRD# 6192487[1]), formerly a Moloney Securities broker, recommended unsuitable investments that led to more than $1 million in damages, according to investor disputes filed in the last several years.

MDF Law is investigating the former El Dorado Springs, Missouri broker for similar conduct. Investors who lost money working with her should contact us immediately. They can find additional detail about her alleged conduct in this post, based on information in her Financial Industry Regulatory Authority (FINRA) BrokerCheck profile, accessed on October 9, 2023. 

Pending Disputes Allege Suitability Violations

Seven parties of investors filed disputes [2]involving Mr. Gallette between October 2022 and September 2023. They alleged conduct including unsuitable investment recommendations and failure to conduct reasonable and adequate due diligence. The disputes, which remain pending, seek at least $1.6 million in cumulative damages.

Past Lorraine Gallette Disputes Settled for 6-Figures

The above-described investor disputes are not the only ones in Ms. Gallette’s past. Two parties of investors filed disputes involving her in 2020. These claims alleged that she recommended unsuitable securities, including in direct investments and real estate products. They settled for a total of $622,000.

What Are Suitable Investments?

To understand the allegations in the disputes regarding Ms. Gallette, it is necessary to understand FINRA’s suitability standard. As established by FINRA Rule 2111[3], brokers may only recommend investments or investment strategies which they have a “reasonable basis to believe” are suitable for their customers. The investments or strategies, in other words, must be tailored to the customer’s investment profile, based on reasonable diligence into the factors that make up an investment profile: age, net worth, financial situation, income, risk tolerance, liquidity needs, and more. 

FINRA: Gallette Last Based in El Dorado Springs, Missouri

Lorraine Gallette, also known as Lorraine Schmidt, launched her career as a broker in 2013. That was the year she joined Coastal Equities, where she remained until departing for Moloney Securities in 2021. She worked at Moloney’s branch office in El Dorado Springs, Missouri until April 2022. Since her departure, she has not been registered as a broker or an investment adviser. With eight years of experience as a broker under her belt, she has completed three industry exams, including the Series 63 and the Series 7.

Get a Free Consultation with MDF Law Today

If you lost money on investments recommended by Loraine Gallette, call MDF Law at 800-767-8040 to discuss your recovery options with an attorney. Our team has proven experience navigating FINRA arbitration proceedings, securing tens of millions in recoveries for our clients. The firm accepts cases on a contingency basis and provides free consultations across the US. Don’t delay: your window to file a claim may be limited. Call MDF Law today.