In an unsettling revelation that places the spotlight on financial malpractices once again, John Kevin Egan, an unregistered broker formerly associated with Western International Securities, is under intense scrutiny. Egan is grappling with four pending customer disputes and three already settled disputes, as inferred from his public FINRA BrokerCheck records.
Further Details on Egan’s Allegations
Four clients of Western International Securities have accused Egan of improper conduct, with cases still waiting to be resolved. These allegations assert that Egan pursued inappropriate advice and opinions, resulting in potential damages of approximately $250,000.
In addition to these pending allegations, past records indicate that Egan has had cases leveled against him over the past year. He agreed to pay $26,200 in September 2023 as a reparative measure for allegations that involved purported misrepresentation of an investment.
Egan and FINRA cases
Apart from the heinous allegation, there have been two crucial FINRA cases against Egan. The first of these, listed under case number 22-01709 from August 2022, saw a Western International customer allege unsuitability, resulting in stated damages of $158,000. Come May 2023; the case was agreed upon for a mere $13,166.
Another equally significant instance from June 2022 had another Western International Securities customer initiate FINRA case number 22-01355. Similar charges of unsuitability were leveled against Egan, this time with stated damages of a staggering $379,250. This case saw settlement of $50,678.
Deep Dive into FINRA’S Suitability Rule
The accusation of “unsuitability” brought towards Egan points towards violation of FINRA Rule 2111, known as the suitability rule. This rule mandates brokers and their corresponding firms to ensure a reasonable basis to endorse a recommendation as suitable for a customer. Advisory actions should be consistent with the best interest of the customer, taking into consideration their financial situation, needs, and other relevant facts.
For Egan, the timeframe from July 1996 to February 2021 bore witness to his association with Western International Securities, Inc. Additionally, he also maintains an affiliation with Coordinated Wealth Management in Glendora, CA.
This growing list of allegations puts investors at high risk and underlines the importance and need for regulatory bodies like the FINRA. Investors with a history of investment involving John Egan should explore the possibility of a FINRA arbitration to potentially recover damages.