Joseph Francis Doody – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Joseph Francis Doody.
BrokerComplaints.com is currently investigating allegations related to Joseph Francis Doody. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Joseph Doody
Joseph Francis Doody is an Investment Adviser. Joseph Francis Doody’s Central Registration Depository (CRD) number is 2715433 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2715433.
Click here to download a Detailed Audit Report for Joseph Francis Doody.
Joseph Francis Doody has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Joseph Francis Doody’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 12/3/2003
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC ADMINISTRATIVE PROCEEDING RELEASE NO. 34-48870, DATED DECEMBER 3, 2003: THE SECURITIES AND EXCHANGE COMMISSION (\COMMISSION\ OR \SEC\) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED AGAINST JOSEPH F. DOODY IV ( ESPONDENT\ OR \DOODY\) PURSUANT TO SECTIONS 15(B) AND 15B(C) OF THE SECURITIES EXCHANGE ACT OF 1934 (\EXCHANGE ACT\) AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 (\ADVISERS ACT\).
- Resolution: Order
- Sanction Details :: Sanctions: Bar
- Sanction Details: ACCORDINGLY, IT IS ORDERED: PURSUANT TO SECTIONS 15(B)(6) AND 15B(C)(4) OF THE EXCHANGE ACT AND SECTION 203(F) OF THE ADVISERS ACT, THAT RESPONDENT DOODY BE, AND HEREBY IS BARRED FROM ASSOCIATION WITH ANY BROKER, DEALER, MUNICIPAL SECURITIES DEALER, OR INVESTMENT ADVISER. ANY REAPPLICATION FOR ASSOCIATION BY THE RESPONDENT WILL BE SUBJECT TO THE APPLICABLE LAWS AND REGULATIONS GOVERNING THE REENTRY PROCESS, AND REENTRY MAY BE CONDITIONED UPON A NUMBER OF FACTORS, INCLUDING, BUT NOT LIMITED TO, THE SATISFACTION OF ANY OR ALL OF THE FOLLOWING: (A) ANY DISGORGEMENT ORDERED AGAINST THE RESPONDENT, WHETHER OR NOT THE COMMISSION HAS FULLY OR PARTIALLY WAIVED PAYMENT OF SUCH DISGORGEMENT; (B) ANY ARBITRATION AWARD RELATED TO THE CONDUCT THAT SERVED AS THE BASIS FOR THE COMMISSION ORDER; (C) ANY SELF-REGULATORY ORGANIZATION ARBITRATION AWARD TO A CUSTOMER, WHETHER OR NOT RELATED TO THE CONDUCT THAT SERVED AS THE BASIS FOR THE COMMISSION ORDER; AND (D) ANY RESTITUTION ORDER BY A SELF-REGULATORY ORGANIZATION, WHETHER OR NOT RELATED TO THE CONDUCT THAT SERVED AS THE BASIS FOR THE COMMISSION ORDER.
DISCLOSURE 2 –
- Event Date: 11/8/2001
- Disclosure Type: Civil
- Disclosure Resolution: Final
- Disclosure Detail :: Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: LITIGATION RELEASE NO. 17225, DATED NOVEMBER 8, 2001 – THE SEC FILED AN INJUNCTIVE ACTION IN THE U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ALLEGING THAT JOSEPH F. DOODY IV (DOODY), ENGAGED IN ILLEGAL INSIDER TRADING IN ADVANCE OF THE JULY 30, 1998 ANNOUNCEMENT THAT TWO COMPANIES HAD AGREED TO MERGE. THE COMPLAINT ALLEGES THAT AN EXECUTIVE ASSISTANT AT ONE OF THE COMPANIES, LEARNED CONFIDENTIAL INFORMATION REGARDING THE MERGER AND TIPPED HER THEN-BOYFRIEND, DOODY, WHO IN TURN TIPPED ANOTHER. ACCORDING TO THE COMPLAINT, DOODY PURCHASED COMMON STOCK AND CALL OPTIONS THAT HE SOLD AFTER MERGER ANNOUNCEMENT, REALIZING $240,953 IN ILLEGAL PROFITS. BEFORE THE MERGER ANNOUNCEMENT, DOODY PURCHASED 425 SHARES OF COMMON STOCK AND 100 CALL OPTIONS. THESE PURCHASES CONCENTRATED APPROXIMATELY 94% OF DOODY’S LIQUID ASSETS (APPROXIMATELY $22,300 OF $23,800) IN ONE COMPANY’S SECURITIES.
- Resolution: Judgment Rendered
- Sanction Details :: Sanctions: Cease and Desist/Injunction
- Sanction Details: SEC LITIGATION RELEASE NO. 18484, DATED DECEMBER 3, 2003 – ON NOVEMBER 18, 2003, THE EASTERN DISTRICT OF PENNSYLVANIA ENTERED A FINAL JUDGMENT AGAINST JOSEPH F. DOODY IV (\DOODY\) OF NEWTOWN, PENNSYLVANIA, IN A COMMISSION ACTION THAT CHARGED HIM WITH INSIDER TRADING IN THE SECURITIES. THE FINAL JUDGMENT ENTERED BY THE COURT ON NOVEMBER 18 PERMANENTLY ENJOINED DOODY FROM VIOLATING SECTION 10(B) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER. IT ALSO WAIVED PAYMENT OF HIS ILLEGAL PROFITS OF $240,953 AND PREJUDGMENT INTEREST, AND DID NOT IMPOSE A CIVIL PENALTY, BASED ON DOODY’S SWORN FINANCIAL STATEMENTS. DOODY SETTLED THE ACTION WITHOUT ADMITTING OR DENYING THE ALLEGATIONS IN THE COMMISSION’S COMPLAINT. HE IS CURRENTLY SERVING AN 18-MONTH PRISON TERM IN CONNECTION WITH A RELATED CRIMINAL PROCEEDING IN WHICH HE PLED GUILTY TO ONE COUNT OF INSIDER TRADING AND ONE COUNT OF OBSTRUCTION OF JUSTICE IN DECEMBER 2002.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- THE GMS GROUP, LLC (CRD#: 8000) :: 3/3/2000 – 1/2/2003 :: EAST HANOVER, NJ
- COMMERCE CAPITAL MARKETS, INC. (CRD#: 6940) :: 5/15/1996 – 2/10/2000 :: PHILADELPHIA, PA
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Joseph Francis Doody, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Joseph Doody
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Joseph Francis Doody – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (2715433) for the broker – Joseph Francis Doody
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.