January 30, 2018 Comments (0) Current Investigations

Finra Bars 2 Brokers – Alleged Fund Misuse

Matthew Peregoy
(Last Updated On: February 15, 2018)

FINRA Bars Matthew Kerby and Matthew Peregoy for Separate Matters

According to the Financial Industry Regulatory Authority (FINRA), the regulator has barred two brokers for failing to provide information connected to alleged misuse of funds. This information comes from two separate letters of acceptance, waiver and consent from FINRA.

Matthew Kerby Investigation

FINRA was reportedly investigating allegations that Matthew Kerby converted an elderly customer’s funds. During the investigation, Kerby apparently refused FINRA’s request for information. In doing so, according to FINRA, Kerby is violating FINRA rules 8210 and 2010.

According to his FINRA BrokerCheck report, Kerby was registered with Edward Jones in Paoli, Indiana from August 2007 until November 2017 when he was discharged for “Misuse of client funds for his own benefit.”

For FINRA’s full findings see FINRA case #2017056495801.

Matthew Peregoy Investigation

Separately, FINRA has barred Matthew Peregoy for reportedly failing to provide documents in relation to potential misuse of funds and failure to disclose a civil judgment, according to the letter of acceptance.

His BrokerCheck report states that Peregoy has been in the industry since 1993 and has one customer dispute listed that has since been settled. Peregoy was registered with Investors Capital Corp. from January 2006 to July 2016, when the firm terminated his registration, according to FINRA.

For FINRA’s full findings see FINRA Case # 2017054026701.

Failure to Supervise

Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.

Free Consultation

Are you concerned about investments you made with Matthew D. Kerby or Matthew Peregoy? If so, the attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.

The foregoing information, which is all publicly available, is being provided by The White Law Group.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information, please visit our website, www.whitesecuritieslaw.com.

 

 

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