Advisor Alert: Our Attorneys Are Investigating Derrick Brauner For Investment Fraud

Last Updated: November 2024 (Osage Beach, Missouri)

National securities fraud lawyers at Patil Law P.C. are investigating Moloney Securities broker Derrick Brauner (CRD #6082847) regarding a pending FINRA arbitration alleging unsuitable investment recommendations and negligence in corporate debt transactions between 2018-2020.

Critical Insights About Osage Beach, MO Financial Advisor Derrick Brauner

• Advisor Name: Derrick Allen Brauner
• CRD: 6082847
• Location: Osage Beach, MO
• Current Employer: Moloney Securities Co., Inc.
• Classification: Financial Advisor/Registered Representative
• Primary Location: Osage Beach, MO
• Can Derrick Brauner be sued in FINRA arbitration: Yes
• Current Legal Action: FINRA arbitration seeking $54,000
• Professional Designations: Certified Financial Planner (CFP)

If you have suffered investment losses in corporate debt or other investments recommended by Mr. Brauner, please contact Attorney Patil online or (800) 950-6553 for a free initial consultation.

Details of Current FINRA Arbitration

Corporate Debt Investment Allegations (Filed August 2024)

A customer has initiated FINRA arbitration proceedings (Case #24-01714) alleging:

• Unsuitable investment recommendations
• Negligent portfolio management
• Losses related to corporate debt investments
• Activities occurring between 2018-2020
• Damages of $54,000

Analysis of Corporate Debt Investment Issues

Corporate Bond Investment Risks

The allegations raise significant concerns about fixed-income investment management during a challenging market period:

• Interest rate risk exposure
• Credit quality assessment
• Liquidity considerations
• Duration management
• Portfolio concentration issues

Regulatory Framework and Investor Protection

SEC Regulation Best Interest

The SEC’s Regulation Best Interest establishes comprehensive obligations for brokers recommending fixed-income securities. Under this framework, advisors must thoroughly evaluate and document their basis for believing corporate bond recommendations serve their clients’ best interests. This includes careful analysis of:

• Credit ratings and default risks
• Interest rate sensitivity
• Liquidity considerations
• Portfolio concentration levels
• Tax implications
• Overall portfolio impact

FINRA Rules and Their Significance

FINRA Rule 2111 (Suitability) sets specific standards for fixed-income recommendations. The rule requires advisors to thoroughly understand and analyze both the security being recommended and the customer’s investment profile. For corporate bonds, this includes evaluating:

• The issuer’s creditworthiness
• The bond’s features and risks
• The impact of interest rate changes
• The client’s need for liquidity
• Overall portfolio diversification

FINRA Rule 2210 (Communications with the Public) governs how brokers discuss fixed-income investments with clients. This rule requires:

• Fair and balanced presentation of risks and rewards
• Clear disclosure of credit ratings
• Accurate yield and return information
• Complete discussion of liquidity limitations
• Transparent fee and commission disclosure

FINRA Rule 5310 (Best Execution) requires firms to use reasonable diligence to obtain the most favorable price for customers under prevailing market conditions. For corporate bonds, this means:

• Reviewing multiple pricing sources
• Understanding mark-ups and spreads
• Documenting execution decisions
• Monitoring trading costs
• Regular review of execution quality

Professional Background and Experience

Brauner’s career in financial services includes:

• Moloney Securities (2017-Present)
• Smith Moore & Co. (2012-2017)

Professional Qualifications:

• Series 7 (General Securities Representative)
• Series 66 (Combined State Law)
• Certified Financial Planner (CFP) designation
• Radio host discussing financial topics

Red Flags for Fixed Income Investors

1. Pending arbitration involving corporate debt recommendations
2. Questions about portfolio suitability
3. Concerns about risk management
4. Issues during volatile market period
5. Fixed income portfolio management concerns

Implications for Current and Former Clients

Investors who purchased corporate bonds or other fixed-income investments should review:

• Investment recommendations timing
• Portfolio allocation decisions
• Risk level appropriateness
• Transaction costs and fees
• Overall investment performance

Patil Law P.C. Will Help You Recover Your Investment Losses

If you invested in corporate bonds or other fixed-income securities through Derrick Brauner, contact Attorney Patil at (800) 950-6553 for a free consultation. Cases handled on contingency – no recovery, no fee.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.