Retired Texas Couple Files FINRA Claim Against McNally Financial Services Over Priority Income Fund Losses
The White Law Group has filed a FINRA arbitration claim on behalf of a retired couple from Texas against McNally Financial Services. The claim alleges the couple’s broker recommended an unsuitable investment in Priority Income Fund. The couple is seeking damages of $100,000 to $200,000. If you invested through McNally Financial Services and suffered losses, you may be able to speak with our FINRA arbitration attorneys about your options.
What the Claim Alleges
The claim alleges the broker recommended Priority Income Fund without adequately considering the couple’s age, retirement income needs, risk tolerance, or need for liquidity. The claimants allege that McNally Financial Services, as the FINRA member firm responsible for supervising the broker’s recommendations, failed to catch and stop an unsuitable sale to retired clients.
About Priority Income Fund
Priority Income Fund, Inc. is a non-traded, registered closed-end fund that invests primarily in senior secured loans and collateralized loan obligations. Like other non-traded closed-end funds, it is illiquid and difficult to value, with no public market for its shares, making it a poor fit for retirees who need regular access to their money.
Managing Partner Statement
“Retirees need investments they can count on for income and access to when they need it, not money locked into an illiquid closed-end fund,” said Dax White, managing partner of The White Law Group. “We believe there may be other McNally Financial Services clients who were sold Priority Income Fund or similar investments and don’t yet realize they have recourse.”
Can McNally Financial Services Be Held Responsible?
Broker-dealers are required to supervise the recommendations made by their registered representatives. When a firm fails to catch an unsuitable or overconcentrated recommendation, especially for retired clients who depend on their portfolio for income, it can be held liable for the resulting losses, even if it did not directly make the recommendation itself.
Recovering Losses from Priority Income Fund
Investors who were sold an unsuitable investment in Priority Income Fund may be able to recover losses through FINRA arbitration. The White Law Group is investigating potential claims on behalf of other investors who worked with this broker or firm and were recommended similar investments.
Contact The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago and Seattle. If you invested through McNally Financial Services and believe you were sold an unsuitable investment in Priority Income Fund, call us today at (888) 637-5510 for a free consultation, or contact us online.
Frequently Asked Questions
1. How do I file a claim to recover money I invested through McNally Financial Services?
Most brokerage account agreements typically include a pre-dispute arbitration clause, which many investors don’t know exists until they need it. That means claims like this are generally filed and resolved through FINRA arbitration rather than in court, and arbitration can still result in a monetary recovery for investors.
2. What makes a Priority Income Fund recommendation “unsuitable”?
A recommendation is unsuitable when it doesn’t match an investor’s risk tolerance, liquidity needs, or investment goals. Priority Income Fund is an illiquid, non-traded closed-end fund, making it generally inappropriate for a large share of a retail investor’s portfolio, especially for retirees who need access to their money.
3. Can McNally Financial Services be held responsible even if it didn’t directly approve the investment?
Yes. Broker-dealers have a duty to supervise their registered representatives’ recommendations. If a firm’s supervisory system failed to catch an unsuitable sale, the firm may be liable for the resulting losses.
