Finra bars former rep over collectibles

Dale Earl Krueger allegedly used customer funds to buy medals.

The Financial Industry Regulatory Authority Inc. has barred Dale Earl Krueger, a former broker in Midland, Mich., who most recently was associated with Moloney Securities, for not appearing at a hearing involving his activities with collectible medals.

According to a Finra letter of acceptance, waiver and consent, Mr. Krueger accepted customer funds to purchase collectible medals but failed to properly segregate and account for the medals from his own holdings. He allegedly also used a portion of the funds to make unauthorized loan and commission payments to third parties in violation of Finra rules.

In December 2011, customers invested $25,000 in collectible medals sold by Mr. Krueger, Finra said. The customers’ investment in the medals was made through a business entity controlled by Mr. Krueger and the $25,000 was deposited into a bank account that he owned or controlled. Finra said that Mr. Krueger failed to provide customers with any documentation of the sale, physically separate the medals that had been purchased from his own holdings, or adequately document the customers’ holdings in his own records.

In addition, he transferred at least $5,800 of the customers’ funds as purported loans or commissions to a former broker who had brought him the business, without confirming directly with the customers that they had authorized any such loans or commissions. In fact, they had not, Finra said.

Mr. Krueger began his securities career in 1983 at Merrill Lynch and worked at five firms before joining Maloney Securities in 2011. In December 2015, his registration with Moloney was terminated.