My Analysis: Uncovering the John Egan Case of Questionable Financial Advice

As a financial analyst and writer, I’ve come across many cases that highlight the darker side of financial advisory services. One such case currently in the spotlight involves John Kevin Egan, an unregistered broker previously connected to Western International Securities. According to his publicly accessible FINRA BrokerCheck records, Egan is facing four pending customer disputes and has already settled three other disputes.

An In-Depth Look at the Accusations Against Egan

I’ve taken a closer look at the accusations leveled against Egan, and it’s concerning – four clients from Western International Securities have made claims of improper advice and actions. These unresolved cases reportedly revolve around recommendations that didn’t align with client interests, with potential damages climbing to roughly $250,000.

Looking back at Egan’s record over the last year, it becomes evident that this isn’t his first run-in with such issues. In September 2023, Egan agreed to a settlement of $26,200 to reconcile misrepresentation allegations regarding one of his investment recommendations.

A Review of Egan’s History with FINRA

The list of accusations against Egan includes two significant cases filed with FINRA. In the first, filed in August 2022 under case number 22-01709, a Western International customer claimed that Egan made unsuitable recommendations, citing damages of $158,000. By May 2023, a settlement was reached for just over $13,000.

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Another similar case emerged in June 2022 when a different Western International Securities customer filed FINRA case number 22-01355. Egan again faced charges of making unsuitable recommendations, and this time the damages were claimed at an even more substantial $379,250. The settlement concluded at $50,678.

Diving Into the Core of FINRA’s Suitability Rule

Allegations of unsuitability against Egan suggest a breach of FINRA Rule 2111, the suitability rule. Brokers and their firms are obliged to have a reasonable basis to believe that any advice they offer is suitable for the customer, based on a thorough understanding of the customer’s financial needs and circumstances. This rule ensures that the invested interests of the client are put first and foremost.

Egan’s own history, from July 1996 to February 2021, shows he worked with Western International Securities, Inc. He has also been involved with Coordinated Wealth Management in Glendora, CA.

The pattern of allegations against Egan highlights a significant risk to investors and emphasizes the critical role that regulatory bodies like FINRA play in the financial industry. If you’ve invested with John Egan, you may want to consider a FINRA arbitration as a possible avenue to recover any losses.

Mahatma Gandhi once said, “A customer is the most important visitor on our premises.” Indeed, in the realm of financial advising, the client’s trust is sacred. Yet, some advisors breach that trust. In fact, a study by The National Bureau of Economic Research found that 7% of advisors have been disciplined for misconduct, compromising clients’ financial well-being.

In my role as a financial analyst, I advise everyone to thoroughly research advisors before investing. Always verify an advisor’s FINRA CRD number and look into their background. This precaution could save you from making an unfortunate financial decision.

Remember, knowledge is power, especially in managing your financial future. By staying informed and vigilant, you can steer clear of potentially harmful financial advice and find advisors who truly have your best interests at heart.

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