Moloney Securities Co., Inc. – Broker Misconduct and Regulatory Complaints
The White Law Group reviews regulatory issues involving Moloney Securities , a FINRA-registered broker-dealer headquartered in Manchester, MO. If you have suffered investment losses while working with the firm or one of its registered representatives, we may be able to help you with recovery options.
About Moloney Securities Co., Inc.
Moloney Securities Co., Inc. is a brokerage firm and investment advisory firm headquartered in Missouri. Like many independent broker-dealers, Moloney Securities may be held liable for the actions of its registered representatives, particularly if the firm fails to adequately supervise its brokers.
Regulatory Actions Involving Moloney Securities
Moloney Securities has faced multiple regulatory actions and sanctions from FINRA and the SEC, including:
December 2022 – FINRA Sanction
- Issue: Improper sales of GPB Capital Holdings private placements.
- Outcome: Censured and ordered to pay $268,082 in restitution with interest.
May 2020 – FINRA AWC
- Issue: Failure to establish and maintain supervisory and suitability procedures.
- Outcome: Censured and fined $100,000, plus over $15,000 in restitution.
September 2016 – SEC Settlement
- Issue: Repeated violations of the Investment Advisers Act of 1940.
- Outcome: Censured and fined $34,000.
The firm has reportedly also been named in multiple customer arbitration claims, including a $300,000 FINRA panel award for alleged misconduct.
Broker Misconduct Allegations – Moloney Securities
The White Law Group is reviewing FINRA records that indicate several Moloney Securities brokers have been involved in customer disputes or regulatory actions. Allegations include:
Glennon Cole (CRD #1999588)
- 11 customer complaints since 2000.
- Allegations include unsuitable recommendations, negligence, and failure to supervise.
- Multiple settlements, including $122,500 and $55,000.
Edward Balmes (CRD #2110152)
- Three customer disputes, two were reportedly settled for $77,500 and $30,000 involving unsuitable investments.
Shane DeSherlia (CRD #6800960)
- Multiple investor complaints including a $500,000 claim in 2023 related to unsuitable recommendations/negligence.
John Raymond Hebner (CRD#3258824)
- At least six customer complaints.
- Allegations include suitability, misrepresentation, and negligence.
- Settlements include $36,000 and $30,000; pending claims total over $475,000.
Jeffrey Max Cohen (CRD#: 2528929)
- Barred by FINRA in 2023 for failure to cooperate in an investigation into “selling away.”
- Involved in 9 customer arbitration cases with significant settlements, including $350,000 and $200,000.
Broker Due Diligence Obligations
Brokerage firms like Moloney Securities have a duty to perform due diligence on the investments they offer and to supervise their financial professionals. Failure to do so may result in liability for investor losses, particularly in cases involving high-risk or illiquid investments such as private placements or alternative investments.
FINRA Arbitration vs. Class Action – What’s the Difference?
Most investor disputes are handled through FINRA arbitration, not court.
| Feature | FINRA Arbitration | Class Action |
| Speed | 12–18 months | Several years |
| Individual Attention | Yes | No – group-based resolution |
| Compensation | Tailored to your losses | May be less per person |
| Legal Requirement | Often mandatory by contract | Optional, unless certified |
Recovery Options for Investors
If you suffered financial losses while working with Moloney Securities or one of its brokers, you may be eligible to file a FINRA arbitration claim. The White Law Group has recovered millions for investors through FINRA arbitration by pursuing claims against brokerage firms for unsuitable investments, misrepresentation, and failure to supervise.
Free Consultation
To speak with a securities attorney about your potential claim involving Moloney Securities Co., Inc., please call The White Law Group at 888-637-5510 or visit www.whitesecuritieslaw.com.
FAQs
- What types of investments are commonly involved in these disputes?
Alternative investments like REITs, private placements, and corporate debt products are frequently cited in investor complaints involving Moloney Securities. - What is “selling away”?
This occurs when a broker sells investments that haven’t been approved by the broker-dealer. It can expose investors to unvetted, high-risk opportunities. - Is there a time limit to file a claim?
Yes, most claims must be filed within 6 years of the event. Prompt action is recommended.
