FINRA Bars Former Morgan Stanley Representative
The Financial Industry Regulatory Authority (FINRA) has barred former Morgan Stanley broker, John Joseph Cahill. The ex-registered representative, who was fired from Janney Montgomery Scott early last year, is accused of potentially converting and/or misappropriating an elderly client’s funds while he was at Morgan Stanley.
John Cahill Is Accused of Elder Investor Fraud
With 34 years in the industry, Cahill was a Morgan Stanley broker from 1984 to 2005 and then again from 2009 to 2013. After this point, the Morgan Stanley brokerage firm let him resign because of allegations that he may not have been in compliance with the broker-dealer’s policy requiring that he let clients know before making transactions on their behalf.
It was just one year before that, in 2012, when a customer paid a $42K investor settlement over allegedly unsuitable investments made by John Cahill. He then became a Janney Montgomery Scott broker from 2013 to 2019.
However, the brokerage firm allowed him to step down last March because of his purported failure to disclose a fiduciary relationship with one Morgan Stanley client he had power of attorney for and from whom he received funds. FINRA said that the client was a senior investor.
For a brief time, between 2005 and 2009, Cahill also was a Citigroup broker.
Inadequate Supervision by Broker-Dealers
Broker-dealers have a duty to properly supervise their registered representatives so that fraud and negligence don’t occur. They also must have the proper written and supervisory procedures and policies in place and are required to implement them.
When failure to any of this results in investors being harmed, this can be grounds for filing a brokerage firm negligence case to recover losses and other damages.
Senior Investment Fraud
Our investment fraud attorneys at SSEK Law Firm have spent 30 years successfully pursuing such claims on behalf of investors throughout the United States.
Shepherd Smith Edwards and Kantas (SSEK Law Firm) are looking into investor claims involving John Cahill. If you or someone you know suffered losses while Cahill was your Morgan Stanley broker or your registered representative at any of the other broker-dealers where he worked, contact SSEK Law Firm today by either filling out our online form or calling us on (800) 259-9010.