Last Updated: October 2024 (Chesterfield, Missouri)
Edward James Balmes Financial Advisor Fraud Alert
National securities fraud lawyers Patil Law P.C. are investigating broker Edward James Balmes (CRD #2110152), who is currently employed at Moloney Securities Co., Inc. in Chesterfield, Missouri. He has been involved in several customer disputes related to suitability and negligence regarding investment recommendations.
Edward James Balmes (CRD #2110152) is a financial advisor with over three decades of experience, currently employed at Moloney Securities Co., Inc. in Chesterfield, Missouri. However, his record includes multiple customer disputes involving allegations of unsuitable investment recommendations and negligence, resulting in significant financial settlements. Below, we provide further details on Balmes’ professional background and the customer complaints that may raise concerns for potential investors.
Critical insights about Chesterfield MO stockbroker Edward James Balmes:
- Advisor Name: Edward James Balmes
- CRD: 2110152
- Location: Chesterfield, Missouri
- Current Employer: Moloney Securities Co., Inc.
- Classification: Stockbroker + Financial Advisor
- Primary Location: Chesterfield, MO
- Can Edward James Balmes be sued in private FINRA arbitration: Yes
- Has Mr. Balmes been barred by FINRA: No
- Highest Damages Allegation: $500,000
- Highest Settlement: $77,500
- Pending Customer Dispute: No
If you have suffered investment losses by Edward James Balmes, we strongly encourage you to exercise your rights to experienced legal representation. Recover what is owed to you by retaining a breach of fiduciary duty lawyer. Reach out to the legal team at Patil Law P.C. via the secure online form or call the firm directly toll-free at (800) 950-6553.
Lost Money With Stockbroker Edward James Balmes?
A customer of Moloney Securities Co., Inc. alleged unsuitability and negligence related to corporate debt products in a complaint filed on November 28, 2022. The client sought $99,000 in damages, and the case was settled for $30,000 on June 8, 2023 (FINRA Docket #22-02636).
In another case, a complaint was filed on July 27, 2020, concerning suitability and declines in portfolio values related to Direct Participation Programs (DPPs) and Limited Partnerships (LPs). The customer sought $500,000 in damages, and the case was settled for $77,500 on August 23, 2021 (FINRA Docket #20-02332).
Allegations of Broker Misconduct Against Edward James Balmes
Customers of Edward James Balmes have alleged the following misconduct in connection with his handling of their accounts:
- Unsuitability: Balmes has been accused of recommending investments, such as corporate debt and DPPs, that did not align with clients’ financial goals or risk tolerance.
- Negligence: Allegations have also been made regarding Balmes’ failure to properly assess the suitability of investment products, leading to customer losses.
Brokers and their firms are required to comply with FINRA Rule 2111, which mandates that investment recommendations must be suitable for the customer’s specific financial situation. The allegations against Balmes suggest possible violations of this rule, leading to customer disputes and financial settlements.
FINRA Rule 2111, the Suitability Rule, requires brokers to have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer, based on the customer’s financial situation, needs, and investment profile. This rule covers the three key obligations: reasonable-basis suitability (the recommendation must be suitable for at least some investors), customer-specific suitability (the recommendation must be appropriate for that particular customer), and quantitative suitability (ensuring that the number of recommended transactions is not excessive). Related rules include FINRA Rule 2090, the Know Your Customer Rule, which mandates that brokers understand their clients’ investment profiles to provide suitable advice.
Broker Experience Summary
Edward James Balmes (CRD #2110152) has been a registered financial advisor for over three decades, currently employed with Moloney Securities Co., Inc. since October 2000. Over the course of his career, Balmes has been affiliated with several firms, including Interfirst Capital Corporation and RPR Securities Corporation. Balmes holds various state licenses and has passed multiple industry exams, such as the Series 7 – General Securities Representative Exam and the Series 63 – Uniform Securities Agent State Law Exam, which qualify him to offer financial services across multiple states.
Balmes is licensed to operate in 10 U.S. states, including Missouri, Illinois, Texas, and Arizona. His extensive experience spans investment advisory services, brokerage, and client portfolio management. While his career has had a broad scope, it has also been marked by several customer disputes that led to settlements over issues like unsuitable investment recommendations and negligence.
Negative Disclosures and Customer Disputes
Edward James Balmes has been involved in two customer disputes, both of which were settled:
- Settlement (2023): A customer filed a complaint on November 28, 2022, alleging unsuitability and negligence regarding corporate debt products. The client sought $99,000 in damages, and the case was settled for $30,000 on June 8, 2023 (FINRA Docket #22-02636).
- Settlement (2021): Another customer filed a complaint on July 27, 2020, alleging suitability issues related to Direct Participation Programs (DPPs) and Limited Partnerships (LPs), resulting in a portfolio value decline. The customer sought $500,000 in damages, and the case was settled for $77,500 on August 23, 2021 (FINRA Docket #20-02332).
There are no additional regulatory actions, terminations, or financial disclosures (such as tax liens) on record for Balmes.
Allegations and Accusations
Edward James Balmes has faced the following allegations in customer disputes:
- Unsuitable Investment Recommendations: Balmes has been accused of recommending investments, such as corporate debt and DPPs, that were unsuitable for clients’ financial profiles and risk tolerance.
- Negligence: Allegations have also been made regarding Balmes’ failure to properly evaluate the suitability of certain investment products for his clients, resulting in financial losses.
These disputes have led to settlements, though no formal regulatory actions or terminations have been reported against Balmes.
Patil Law P.C. Will Help You Recover Your Investment Losses
If you have suffered investment losses in an account handled by Edward James Balmes or have a question about the performance of your account, please contact Attorney Patil online or (800) 950-6553 for a free initial consultation.
Our cases are handled on a contingency basis. We don’t get paid unless we win for you.
