Category Archives: McNally Financial Services

McNally Financial Services Discloses Regulatory Sanction Over Sale of Steepener Investments-San Antonio, TX

San Antonio, Texas

According to publicly available records San Antonio-based brokerage firm McNally Financial Services  (CRD#121196) , discloses two prior regulatory events.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In 7/2013 McNally Financial Services was censured and fined $15,000 to resolve FINRA allegations that the firm failed to establish and maintain an adequate supervisory system and written supervisory procedures governing its sale of Steepeners to it customers, thereby violating NASD Rule 3010 and FINRA Rule 2010. FINRA alleged that the sale of Steepeners was a significant part of McNally’s business during the relevant time period. FINRA AWC 2011025617101

STEEPENER INVESTMENTS

According to the FINRA allegations: ” Steepeners are complex, non-conventional products. They are typically longer-term notes and certificates of deposit with 10 to 20 year maturity dates. Steepeners pay interest rates that are fixed initially and float thereafter based on the “steepness” of the yield curve.’ The steeper the yield curve, or wider the spread between long- and short-term interest rates (typically, the benchmark rate is the constant maturity swap rate), the higher the interest rate paid. Conversely, the flatter the yield curve, or narrower the spread between long and short-term rates, the lower the interest rate paid. Steepeners are typically callable by the issuers after a relatively short, pre-specified period of time (e.g., one year).”

See FINRA’s Investor Alert regarding Steepeners issued in November 2011.

Depending on the terms of the particular Steepener investment, it may not be suitable for someone who is retired or who is seeking a conservative investment strategy.

McNally Financial Services has been a FINRA member since 2002. They have about 22 registered representatives in branch offices located in Texas, California, Florida and Nevada.

 

If you have questions about an account with McNally Financial Services, call to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Mark A. Kemp Investigation-McNally Financial Services Broker-Corpus Christi, TX

June 2017 – Corpus Christi, Texas

According to publicly available records Mark A. Kemp  (CRD#2057200) ,  a  stockbroker who currently works for San Antonio-based McNally Financial Services Corp.  discloses a prior regulatory event, 7 prior customer disputes and 2 terminations from employment.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

IN 4/2012, Kemp was fined $5,000 and suspended five days by FINRA to resolve allegations that in 11/2009 while employed by NEXT Financial Group, he mismarked seven order tickets for a penny stock as unsolicited when, in fact, they were solicited. FINRA Case 2009018570501.

Prior customer disputes against Mark A. Kemp resulting in the payment of compensation include:

  • FINRA Case 9-5086-While employed by Hornor, Townsend and Kent a customer sought damages of $320,000 and alleged that Kemp engaged in unauthorized trading and recommended unsuitable securities and annuities inconsistent with their financial situation, risk tolerance and investment objectives. That case settled for $43,000.
  • FINRA Case 9-03476-A customer of Hornor, Townsend and Kent sought damages of $538,900 alleging that Kemp misled them about suitable strategies and investments, engaged in unauthorized transactions and failed to follow their directions. The case settled for $145,000.
  • Nueces County, TX,  Case 00-4498C- a group of customers of MONY Securities Corporation alleged that Kemp and others were engaged in the sale stock in Worldhome Industries. The customers alleged that none of the funds they invested went to the compan. That case was settled for $1,133,000.

Kemp has been employed  by McNally Financial Services since 4/2010.  He was previously employed by NEXT Financial Group, Hornor, Townsend & Kent and MONY Securities. Kemp discloses a business affiliation with Kemp Financial Services in Corpus Christi, TX.

In 11/1998 Kemp was discharged by MONY Securities who alleged that Kemp participated in selling of private, non approved, securities, “selling away”.

In 11/2009 Kemp was discharged by NEXT Financial Group who made the following allegation on Kemp’s FINRA record: “Solicitation of penny stock in violation of firm policy and failure to observe high standards of commercial order and equitable principal trade.” Kemp indicated on FINRA records that he was discharged because it was alleged that he solicited a penny stock against firm policy.

If you have losses in an account handled by Mark A. Kemp, you may be able to recover damages from his employer through FINRA arbitration. Call to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

McNally Financial Services Broker Marshall Cassedy Investigation-Tallahassee, FL

February 12, 2016- Tallahassee, FL

Rex Securities Law is investigating broker Marshall R. Cassedy, Jr.  of McNally Financial Services .

According to FINRA records  Cassedy has been named in  3 regulatory events, 17 customer disputes and 1 termination.

The customer disputes have alleged various causes of action, including:

  • unsuitable and unauthorized investments
  • excessive investments
  • breach of contract
  • breach of fiduciary duty
  • fraud
  • egregious acts of churning

In one case, NASD Case 04490, the arbitration panel awarded over $172,000 to the customer. Eleven other cases have been  settled at amounts ranging from $4,500-$100,000.

According to FINRA records Cassedy  has been registered with McNally Financial Services since 04/2010. Prior to that he was registered with Capitol Securities Management, who discharged him in 4/2010 with the allegations on FINRA records: ” written customer complaints alleging the violation of internal policies and procedures with respect to the handling of customer accounts.”

Cassedy made the following statement in response: “broker disputes firm filing. He voluntarily resigned from the firm on April 5, 2010 effective APril 9, 2010, in writing ” 

If you have losses in an account handled by  Marshall Cassedy contact us to discuss how you may be able to recover damages from his employer for those losses.

McNally Financial Services has been a FINRA member since 2002, is headquartered in San Antonio, Texas, and has a number of branch offices.

Capitol Securities Management has been a FINRA member since 1985 and is headquartered in Glen Allen, Virginia. They have over 200 representatives in 63 branch offices.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Armen Bahadourian-Former UnionBanc Broker Sanctioned for Trading Without Customer’s Permission

March 17, 2015  

Armen Bahadourian   entered into a Letter of Acceptance, Waiver and Consent  (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that  in late 2012, while registered with UnionBanc Investment Services, he executed a total of 15 unauthorized transactions in municipal securities in the accounts of nine customers in violation of MSRB Rule G-17.

Bahadourian was suspended for 18 months and fined $10,000 and ordered to repay the commission s of $6,880 earned on the unauthorized trades.

FINRA Case # 2013035744301

Bahadourian was previously registered as follows:

  • McNally Financial Services                        4/2014-8/2014
  • UnionBanc Investment Services                  10-2008-1/2013
  • PNC Investments                                               3/2008-10/2008

If you suffered losses in an account handled by Bahadourian, contact us to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870