FINRA Bars Former Maloney Broker for Collectible Medal Investment Scheme
The Financial Industry Regulatory Authority has barred a former Moloney Securities broker for failing to comply with information requests relating to his alleged misuse of customer funds stemming from a collectible medal investment.
Dale Krueger, who joined Moloney Securities in 2011 and held Series 7, 63, and 65 licenses, allegedly solicited clients to invest $25,000 in collectible medals that he sold. The investment was made through a business entity that he controlled, and the funds were deposited into his bank account.
While the clients knew that Krueger used the funds to purchase and store the medals on their behalf, FINRA says that he failed to provide any documentation of the sale, to physically separate the purchased medals from his own holdings, or to document the customers’ holdings in his records. In addition, Krueger allegedly made unauthorized loan and commission payments totaling $5,800 to relatives of the clients.
In his 30-year career, Krueger spent 14 years at Sigma Financial, 8 years at Merrill Lynch, and was previously affiliated with three FINRA-expelled firms, including Alternative Weath Strategies, Broad Street Securities, and The Trading Desk. According to his BrokerCheck profile, Krueger settled seven customer disputes between 1989 and 2012, and his registration with Moloney was terminated in December 2015.
FINRA barred Krueger in all capacities, alleging that he violated Rules 2150 and 2010 for improperly using customer funds and failing to observe high standards of commercial honor, while failing to cooperate with FINRA staff is a violation of Rule 8210.
Krueger signed FINRA’s letter of acceptance, waiver and consent without admitting or denying the findings.
