Mary McDougall Allegedly Made Unauthorized Investments

Mary McDougall (CRD# 1033553[1]), a broker registered with Merrill Lynch, recommended unsuitable investments, according to denied investor disputes. MDF Law is investigating the Saint Paul, Minnesota-based financial professional for similar conduct. If you have concerns about investments in your accounts, contact us for a free consultation.

To learn more about the allegations against Ms. McDougall, continue reading this post. The information below is based on an October 23, 2024 review of her BrokerCheck profile, a Financial Industry Regulatory Authority record. 

Denied Disputes Alleged Suitability Violations, Unauthorized Trades

Between 2002 and 2024, four parties of investors lodged disputes involving Ms. McDougall. These claims included allegations of unsuitable recommendations, unauthorized investments, misrepresentation, omission of material facts, and failure to act in a customer’s best interest. The disputes sought more than $500,000 in alleged damages, cumulatively, and were denied by her member firm.

What Is A Denied Complaint?

As FINRA explains[2] in its online resources, the denial of an investor dispute not mean necessarily mean it was without merit. Rather, a “denial” signifies that the broker and/or firm evaluated the complaint and assessed that it was groundless. (By that same token, of course, the filing of a dispute does not necessarily mean its allegations are true.) When a firm denies an investor’s dispute, the investor can still pursue recourse through the FINRA arbitration process.

Understanding Regulation Best Interest

The SEC’s Regulation Best Interest[3] is an important securities industry standard. In essence, it mandates that broker-dealers must recommend investments in their customer’s best interests—just as the name suggests. Among other requirements, it specifies that broker-dealers must disclose conflicts of interest associated with the products or strategies they recommend. It is similar to FINRA Rule 2111[4], under which brokers may recommend only investments which they have a “reasonable basis to believe” are suitable for a client. To evaluate a recommendation’s suitability, they must ascertain the customer’s profile: a dataset includes the client’s net worth, income, age, financial situation and goals, investment experience and objectives, risk tolerance, and other factors.

Understanding FINRA’s Unauthorized Trading Rules

FINRA rules and other securities industry standards forbid unauthorized trading. FINRA Rule 2020[5], for example, forbids brokers from using manipulative, deceptive, or other fraudulent means to effectuate securities transactions. At the same time, FINRA Rule 3260[6], prohibits discretionary trading absent a customer’s prior written authorization and a firm’s approval.

FINRA: Mary McDougall Based in Saint Paul, Minnesota

Ms. McDougall launched her career as a broker in 1982. That was the year she registered with Merrill Lynch in Saint Paul, Minnesota, where she has remained to this day. With 42 years of experience as a broker, she has completed five industry exams, including the Series 65 and the Series 63. 

Investment Losses? MDF Law May Be Able to Help

Have you suffered losses on investments recommended by Mary McDougall? MDF Law’s seasoned investment fraud attorneys[7] may be able to help. Boasting decades of experience advocating for investors, our lawyers have recovered more than $100 million for their clients. We accept cases on a contingency basis and offer free consultations to investors nationwide. Call 800-767-8040 to discuss your case today.